Brent Dropped by 101 Dollars, WTI Dropped by 90 Dollars

BRENT DECREASED TO 101 DOLLARS, WTI DECREASED TO 90 DOLLARS

Brent crude oil futures contracts fell by 0.65 percent to $101.59 per barrel. The barrel price of US West Texas Intermediate crude oil (WTI) decreased by 95 cents or 1.03 percent to $90.12.

While Brent oil gave back most of its gains last week, WTI lost 1.6 percent.

G7 countries agreed on Friday to release 100 million barrels of diesel and crude oil from emergency reserves. It was stated that the decision was taken after pressure from US President Donald Trump and he promised to avoid restrictions on energy exports.

OIL EXPORTS FROM THE MIDDLE EAST ARE INCREASING

Shipment data released on Monday showed that the G7's reserve sales, as well as crude oil exports from the Middle East, increased supply.

It was stated that exports from the region exceeded pre-war levels in four of seven days in the last week of September, despite attacks on ships passing through the Strait of Hormuz.

"The G7's decision to use strategic reserves reduces the impact of short-term supply concerns on prices. It also strengthens the view that Saudi Arabia's export volumes are returning to pre-war levels, even though the barrels in question are transported at higher costs and through less efficient routes," said KCM Trade Chief Analyst Tim Waterer.

"The combination of these two developments is enough to suppress prices for now, although the risk of further damage to the energy infrastructure in the Gulf region has not been eliminated," Waterer said.

ATTACKS IN THE GULF ARE ON THE MARKET AGENDA

The Houthis announced that they attacked Saudi Aramco facilities in Riyadh and Khurais regions of Saudi Arabia with ballistic missiles and unmanned aerial vehicles in response to 50 air and missile attacks led by Saudi Arabia in Yemen in the last 12 hours.

There was no confirmation from Saudi Arabia regarding the attacks in question.

The Saudi Arabia-backed and internationally recognized Yemeni government announced on Sunday that it had launched a comprehensive military operation to retake all areas under the control of the Iran-backed Houthis.

ARAMCO REDUCED PRICES FOR ASIA

On the other hand, Aramco unexpectedly reduced November crude oil prices for Asia, dropping them to the lowest level in the last six years.

In their note, ING analysts stated that Brent prices continue to remain above $100 per barrel due to ongoing geopolitical tensions and the increase in attacks on commercial ships in the Gulf.

While the Iran war disrupted projects aimed at increasing capacity across the Middle East, there was also uncertainty in forecasts regarding future production potential. Following these developments, it was reported that OPEC + members postponed the evaluation that would determine the 2027 oil production quotas.

Two sources close to the matter said that the decision was taken following these developments.