SINGAPORE / RankWire.AI / – Oil prices hovered around $102 a barrel on Monday after an initial surge pushed Brent above $103. Brent crude futures stood at $102.30 a barrel at 0900 GMT, up by 5 cents. U.S. West Texas Intermediate crude traded at $90.62, down 49 cents, or 0.5%. Earlier gains were driven by renewed security fears that focused on Saudi energy facilities and regional shipping routes. However, the rally lost momentum as regional exports recovered and emergency stock releases increased supply in the market.
During early Asian trading, Brent reached $103.06 a barrel, gaining 81 cents, or 0.79%. WTI increased by 46 cents, or 0.50%, to $91.57 but then retreated from those highs. Yemen’s Iran-backed Houthis claimed they launched ballistic missiles and drones at Saudi Aramco sites in Riyadh and Khurais. The announcement heightened worries about attacks impacting energy infrastructure and shipping in the Middle East.
The Group of Seven also announced plans to boost emergency petroleum supplies. G7 nations agreed to release 100 million barrels of crude, diesel, and other petroleum stocks via the International Energy Agency. The release will be spread over four months. Most of the diesel will enter the market during the first 20 days. This decision follows months of disruptions to crude flows, fuel supplies, and shipping routes across the region.
Regional crude exports increase despite ongoing security threats
In September, Middle East crude exports grew even with continued attacks along key maritime pathways. Data from Kpler and Vortexa indicated regional exports averaged nearly 18.3 million barrels per day during the month. On some days, shipments reached about 18.6 million barrels daily. These volumes surpassed those recorded before the recent conflicts. Saudi Arabia boosted exports via Gulf and Red Sea routes, while Iraqi tanker activity also improved.
The Strait of Hormuz remains a vital global energy corridor. It typically transports about 20% of the world’s crude oil and LNG. During the conflict, commercial ships have faced repeated attacks in Gulf waters and nearby shipping lanes. Costs for freight and insurance have risen sharply, increasing the expense of transporting Middle East crude to major refineries, especially in Asia.
Saudi crude pricing adjusts 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 company set Arab Light for Asia at $5 a barrel below the Oman and Dubai benchmark average, a $3 cut from October. This marked the widest discount for the grade since June 2020. Heavier crude grades for Asia also saw price reductions, while prices for U.S. customers remained steady.
Monday’s trading reflected a market balancing stronger regional exports against ongoing risks to production and shipping. Brent stayed above $100 at 0900 GMT despite the G7 stock release and increased September shipments. WTI remained below $91 after reversing its early gains. Oil traders faced changing Saudi pricing, higher freight costs, and adjustments in emergency inventories. Security issues around Middle East export routes continue to influence global crude prices.