Oil prices edged lower on Monday, October 5, as increased exports from the Middle East and an agreement by the Group of Seven countries to release oil and diesel from strategic reserves weighed on the market.Brent crude futures fell 66 cents, or 0.65%, to $101.59 a barrel. WTI crude lost 95 cents, or 1.03%, to $90.12 a barrel.
G7 decision and supplies from the Middle East
Brent gave up most of its gains from the previous week, while WTI fell 1.6% over the same period. On Friday, the Group of Seven countries agreed to release 100 million barrels of crude oil and diesel fuel from strategic reserves and to refrain from restricting energy exports. The decision came amid pressure from U.S. President Donald Trump.
The reserve supplies are expected to supplement shipments from the Middle East. Shipping data show that exports from the region exceeded prewar levels on four of the last week of September’s seven days, despite attacks on vessels in the Strait of Hormuz.
Tim Waterer, an analyst at KCM Trade, believes the Group of Seven’s decision eases concerns about supply shortages. At the same time, he says confidence is growing that Saudi Arabia’s exports will return to prewar levels, although the oil is being transported along more expensive and less efficient routes.
On Sunday, October 4, OPEC+ countries agreed to leave their oil production targets for November unchanged.
Oil prices edged lower as exports from the Middle East increased and the G7 reached an agreement.
Source: mezha.net