SINGAPORE / RankWire.AI / – Oil prices hovered close to $102 a barrel on Monday following an early surge that pushed Brent crude futures above $103. As of 0900 GMT, Brent futures stood at $102.30 per barrel, up by 5 cents. Meanwhile, U.S. West Texas Intermediate crude traded at $90.62, down 49 cents or 0.5%. The initial gains were driven by renewed security worries highlighting Saudi energy facilities and regional shipping lanes, but those gains diminished later as regional exports recovered and emergency stock releases increased supply in the market.
During early Asian trading, Brent briefly reached $103.06 a barrel, marking an increase of 81 cents or 0.79%. WTI gained 46 cents or 0.50%, reaching $91.57 before losing those early gains. Reports indicated Yemen’s Iran-backed Houthis claimed responsibility for launching ballistic missiles and drones at Saudi Aramco sites in Riyadh and Khurais. This claim heightened concerns about potential attacks on energy infrastructure and commercial shipping in the Middle East.
The G7 nations also moved to inject emergency petroleum supplies into the market. They agreed to release 100 million barrels of crude, diesel, and other petroleum stocks via the International Energy Agency, with the release scheduled over four months. Most of the diesel component will reach the market during the initial 20 days. This decision follows months of disruptions affecting crude flows, fuel supplies, and shipping routes across the region.
Regional crude exports increase despite ongoing security threats
In September, Middle Eastern crude exports grew even as attacks persisted along critical maritime corridors. Data from Kpler and Vortexa indicated that regional exports averaged nearly 18.3 million barrels per day during the month, with several days reaching about 18.6 million barrels per day. These figures surpassed pre-conflict levels. Saudi Arabia expanded exports via Gulf and Red Sea routes, and Iraqi tanker traffic also showed improvement.
The Strait of Hormuz remains a vital energy passage, handling roughly one-fifth of the world’s crude oil and liquefied natural gas traffic. During the conflict, commercial ships faced repeated attacks in Gulf waters and adjacent shipping lanes. Consequently, freight and insurance costs surged, raising transportation expenses for Middle East crude to major refining hubs, especially across Asia.
Saudi crude price adjustments as emergency supplies flood the market
Saudi Aramco reduced November crude prices for Asian buyers but increased prices for northwest Europe and the Mediterranean. The company set the Arab Light price for Asia at $5 below the Oman and Dubai benchmark average, representing a $3 cut from October and the largest discount for the grade since June 2020. Additionally, Saudi Aramco lowered prices for heavier crude grades in Asia, while prices for U.S. customers remained unchanged.
Monday’s trading reflected a market balancing stronger regional exports with ongoing risks to production and shipping. Despite the G7 stock release and higher September shipments, Brent maintained a level above $100 at 0900 GMT. WTI, after early gains, settled below $91. Traders contended with shifting Saudi pricing, rising freight costs, and the influx of emergency inventories. Security issues around key Middle Eastern export corridors continue to influence global crude prices.