Oil prices stabilized as crude oil exports rose and the G7 prepared to release stocks into the market
After a volatile session on Monday, oil prices edged up, driven by increased crude exports from the Middle East and G7 pledges to boost supply, though concerns over ongoing disruptions linked to the Middle East conflict limited selling pressure.
Brent crude futures rose 5 cents to $102.30 per barrel by 12:00 PM Turkish time (09:00 GMT), while WTI crude traded at $90.62 per barrel, down 49 cents (0.5 percent).
Both contracts had lost more than 1 percent in value earlier in the session.
Following the G7 nations' agreement on Friday to release 100 million barrels of diesel and crude oil from emergency reserves, Brent crude gave up most of the gains made last week, and WTI prices fell 1.6 percent. The nations also pledged to avoid energy export restrictions, following pressure from Trump.
Shipping data showed that Middle East crude exports exceeded pre-war levels on four out of seven days in the last week of September, despite attacks on vessels passing through the Strait of Hormuz, and the planned reserve release will further supplement these exports.
The rise in prices for heating oil and kerosene is notable; This situation likely stems from China suspending product exports, which has further constrained the supply of refined products in the Far East.
A ceasefire in the Middle East remains a distant prospect. A resurgence of conflict between Saudi Arabia and the Houthis would lead to continued attacks on energy infrastructure and shipping, keeping the geopolitical risk premium high.
It remains unclear what portion of the oil covered by the new G7 stock release agreement will come from the remainder of the 400-million-barrel emergency stock release deal coordinated by the International Energy Agency (IEA) in March.
According to sources, OPEC+ has postponed the review process to determine members' 2027 oil production quotas, as the conflict involving Iran disrupts capacity-expansion projects across the Middle East and casts uncertainty on future production potential.
Meanwhile, Aramco unexpectedly cut its November crude oil prices for the Asian market to their lowest levels in six years.
In a move that could further exacerbate the supply crunch for refined products, Zelenskyy stated that Ukraine would continue its attacks on Russian oil refineries.
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