Oil Declines as G7 Releases 100 Million Barrels and Regional Exports Recover

West Texas Intermediate crude dropped by 0.54% to around $90.62 a barrel compared to Friday's settlement at $91.11, while Brent crude rose slightly by 0.05% to around $102.30 compared to a previous settlement at $102.25. The Brent-WTI spread reached about $11.68 a barrel.

The decline came after G7 countries announced last Friday the release of 100 million barrels of crude and diesel from their stockpiles, in a coordinated operation led by the International Energy Agency. These volumes will add new supply to the market in phases over the coming months.

In the same context, Middle East oil exports exceeded pre-war levels in four of the last seven days of September, according to shipping data reported by Reuters. This points to a gradual recovery in export activity following previous disruptions.

Geopolitical risks in the region limited the pace of the decline, as investors remain cautious regarding any potential disruption to shipping routes or oil facilities, keeping crude prices supported at historically high levels.

What do these terms mean?

West Texas Intermediate crude: The US benchmark crude used in pricing oil in the United States. Brent crude: The global benchmark crude used in pricing about two-thirds of world oil supplies. International Energy Agency: An international organization coordinating energy policies among consuming nations and emergency stockpiles. Brent-WTI spread: The price difference between the two benchmark crudes, tracked as an indicator of market balance.