Oil prices hold steady as Middle East exports rise and G7 plans emergency stock release
Brent hovered around $100 per barrel while U.S. crude edged higher, as increased Middle Eastern shipments and a pending G7 release of emergency diesel and crude stocks tempered supply concerns linked to Houthi attacks.
Oil prices were largely unchanged on Tuesday, with Brent futures trading at $100.03 a barrel and U.S. West Texas Intermediate at $89.59. The market balanced the impact of higher crude exports from the Middle East against expectations that the Group of Seven will tap emergency diesel and crude reserves to address supply worries stemming from recent Houthi attacks in Yemen.
John Evans, an analyst at oil broker PVM, said Brent is "once again toiling around $100/barrel, as its reasons for trading much beyond the psychological 3-digit mark are being eroded" and that the assumption of more crude reaching the market has dampened price enthusiasm.
Vitol CEO noted that roughly 12 million barrels per day of crude and 2 million barrels per day of refined products have left the region on tankers over the past week to ten days, helping to ease price pressure. Saudi Energy Minister Prince Abdulaziz bin Salman reported that oil flow through the East-West Pipeline to the Red Sea hub of Yanbu reached 5.8 million barrels per day.
Supply concerns persist after Saudi airports in Jazan and Najran were hit by attacks, injuring three people, and the Saudi-led coalition reported intercepting a ballistic missile launched by the Houthis.
The International Energy Agency is set to discuss details of a diesel stock release as Europe and the United States consider how many barrels to make available amid record-high prices. The G7, under U.S. pressure, agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves, though it did not disclose the exact split or participating countries.
The U.S. Energy Information Administration projected a modest decline in global oil production and demand from 2025 to 2026, with a rebound to record levels expected in 2027. In the United States, analysts anticipate a rise in crude inventories, with an estimated 1.8 million barrels added during the week ended Oct. 2, marking a potential third consecutive weekly increase.