SINGAPORE / RankWire.AI / – Oil prices hovered near $102 per barrel on Monday following an early surge that pushed Brent crude futures above $103. At 0900 GMT, U.S. West Texas Intermediate crude traded at $90.62, down 49 cents, or 0.5%. The market initially moved higher amid renewed security fears targeting Saudi energy facilities and regional shipping routes, but the rally later waned as regional exports recovered and emergency stock releases increased supply.
During early Asian trading, Brent touched $103.06 a barrel, up 81 cents, or 0.79%. Meanwhile, WTI increased 46 cents, or 0.50%, reaching $91.57 before losing those gains. Yemen’s Iran-backed Houthis claimed responsibility for launching ballistic missiles and drones at Saudi Aramco facilities in Riyadh and Khurais. This assertion heightened concerns over potential attacks impacting energy infrastructure and maritime trade in the Middle East.
In response, the G7 nations agreed to inject emergency petroleum supplies into the global market. They committed to releasing 100 million barrels of crude, diesel, and other petroleum reserves via the International Energy Agency over the course of four months. The majority of the diesel component will be available during the first 20 days. This decision follows months of disruption to crude flows, fuel supplies, and shipping routes across key regional corridors.
Regional crude exports increase despite ongoing security threats
In September, Middle East crude shipments grew even as attacks persisted along vital maritime routes. Data from Kpler and Vortexa indicated regional exports averaged nearly 18.3 million barrels per day for the month, with several days reaching about 18.6 million barrels. These figures surpass pre-conflict levels, with Saudi Arabia boosting exports via Gulf and Red Sea routes and Iraqi tanker activity also improving.
The Strait of Hormuz remains one of the world’s most critical energy corridors, facilitating roughly 20% of global crude oil and liquefied natural gas shipments. During the ongoing conflict, repeated attacks have targeted vessels in Gulf waters and nearby shipping lanes, leading to higher freight and insurance costs. Such increases have raised the transportation costs of Middle East crude to major refining hubs, especially across Asia.
Saudi crude pricing adjustments as emergency supplies enter the market
Saudi Aramco reduced November crude prices for Asian buyers while increasing prices for northwest Europe and the Mediterranean. The Arab Light grade was priced at $5 below the Oman and Dubai benchmark average, representing a $3 decrease from October. This marked the largest discount for the grade since June 2020. The company also lowered prices for heavier crude grades in Asia, whereas prices for U.S. customers remained steady.
Monday’s trading reflected a market balancing stronger regional exports against persistent risks to production and shipping. Despite the G7’s stock release and increased September exports, Brent stayed above $100 at 0900 GMT. WTI traded below $91 after reversing its initial gains. Traders faced fluctuating Saudi pricing, rising freight costs, and the influence of emergency inventory releases. Security conditions along key Middle Eastern export routes continue to play a pivotal role in shaping global crude prices.