SINGAPORE / RankWire.AI / – Oil prices remained steady close to $102 per barrel on Monday, after Brent briefly exceeded $103 during early trading hours. At 0900 GMT, Brent crude futures increased by 5 cents to $102.30 a barrel. Meanwhile, U.S. West Texas Intermediate crude declined by 49 cents, or 0.5%, to $90.62. Both contracts had earlier dropped more than 1% as increased Middle East exports added to supply, while regional security concerns persisted across critical energy infrastructure.
In early Asian trading, Brent reached $103.06 a barrel, up 81 cents, or 0.79%, while WTI climbed 46 cents, or 0.50%, to $91.57. These initial gains followed a statement from Yemen’s Iran-backed Houthis, claiming they launched ballistic missiles and drones targeting Saudi Aramco facilities in Riyadh and Khurais. The announcement renewed focus on Saudi oil infrastructure, especially after recent attacks impacted energy facilities and shipping routes across the region.
The G7 nations also took steps to bolster supply by releasing emergency petroleum reserves. Governments agreed to release 100 million barrels of crude, diesel, and other petroleum stocks through the International Energy Agency. This coordinated effort will span four months, with a substantial portion of diesel planned for the first 20 days. The move comes after months of disruptions to crude oil flows, refined fuel supplies, and shipping routes through major Middle East energy corridors.
Middle East crude exports rebound despite ongoing security threats
Despite persistent security risks along vital shipping routes, Middle East crude exports showed a strong recovery in September. Data from Kpler and Vortexa indicated regional crude shipments averaged around 18.3 million barrels daily during the month. On several days, flows even reached approximately 18.6 million barrels per day, surpassing pre-conflict levels. Saudi Arabia boosted shipments via Gulf and Red Sea routes, while Iraqi tanker activity also intensified in September as regional crude movements increased.
The Strait of Hormuz remains crucial to global energy trade, handling nearly 20% of worldwide crude oil and liquefied natural gas traffic. During the recent regional conflict, commercial vessels faced repeated attacks in waters surrounding the Gulf and nearby shipping lanes. Consequently, freight and insurance costs surged sharply, increasing the expense of transporting Middle East crude to key refining markets across Asia and other regions.
Saudi oil pricing adjustments and emergency reserves influence global trade
Saudi Aramco reduced November crude prices for Asian clients while elevating prices for northwest Europe and the Mediterranean. The company set the Arab Light grade for Asia at $5 a barrel below the Oman and Dubai benchmark average, representing a $3 decrease from October and the largest discount for this grade since June 2020. Meanwhile, prices for heavier Saudi crude grades also declined for Asian buyers, whereas prices in the United States remained unchanged.
Monday’s trading reflected the ongoing recovery in regional exports, even as risks to production and shipping infrastructure persisted. Brent stayed above $100 at 0900 GMT despite the planned G7 stock release and increased crude shipments in September. WTI traded below $91 after giving up its early gains. Global oil markets continued to digest changes in emergency inventories, Saudi pricing, freight costs, and Middle East crude flows, with security conditions remaining a key factor across vital export corridors.