Oil Drops Nearly $2 as G7 Pledges 100 Million Barrels and Mideast Exports Rise
Updated
Updated · Yahoo Finance · Oct 5
Oil Drops Nearly $2 as G7 Pledges 100 Million Barrels and Mideast Exports Rise
3 articles · Updated · Yahoo Finance · Oct 5
Summary
Brent settled down $1.93 at $100.32 a barrel and WTI fell $1.68 to $89.43 after Middle East crude exports topped pre-war levels on four of seven days in late September.
The selloff deepened after the G7 agreed to release 100 million barrels of diesel and crude from emergency reserves and avoid export curbs, though analysts questioned how much supply would be truly additional.
Risk premiums stayed elevated because attacks on vessels and energy infrastructure remain a threat, with fighting between Saudi Arabia and Iran-backed Houthis continuing near key shipping lanes.
Supply still looks tight beyond the immediate relief: Saudi Aramco expects crude and fuel markets to remain stretched, and the US Strategic Petroleum Reserve has fallen to 283 million barrels, its lowest since 1982.
That leaves the market balancing short-term export gains and reserve releases against a war-driven disruption risk that could keep prices volatile.