Brent Crude Drops 0.4% to $101.82 as Middle East Exports Rise

Brent crude fell 43 cents, or 0.4%, to $101.82 a barrel by 13:26 GMT today, while West Texas Intermediate crude fell $1.50, or about 1.7%, to $89.61. In contrast, gas oil futures on the ICE rose about 2% to $1,377.25 per metric ton.

The decline came after Middle East crude exports exceeded pre-war levels on four of the seven days in the last week of September, according to shipping data, despite continued attacks on vessels passing through the Strait of Hormuz. Added to this is the G7 plan to release 100 million barrels of diesel and crude from emergency stockpiles.

Ole Hansen of Saxo Bank explained that stock drawdowns over the next four months "provide only short-term relief and do little to address the structural constraints facing refined products." The group agreed to a pledge not to impose restrictions on energy exports, according to Reuters.

Tamas Varga of PVM Oil Associates said "a truce in the Middle East remains elusive," and that renewed confrontation between Saudi Arabia and the Houthis indicates continued attacks, "keeping the geopolitical risk premium at a high level." Aramco CEO Amin Nasser believes that refilling global stockpiles after emergency releases could take two years.

What do these terms mean?

Brent crude: Benchmark crude from the North Sea against which much of the world's crude is priced. West Texas Intermediate: The U.S. benchmark crude. Gas oil: Distillate fuel used for heating and transportation, close to diesel. Strategic reserves: Oil reserves held by countries for emergencies and released into the market during supply shortages. Geopolitical risk premium: The increase traders add to the price for fear of supply disruptions.