Oil prices slipped on Monday after the Group of Seven (G7) agreed to release 100 million barrels from emergency reserves. Rising crude exports from the Middle East added to the supply relief.
Brent crude traded at $101.69, down 0.55%, while West Texas Intermediate (WTI) fell 1.04% to $90.16, Trading Economics data showed.
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Reserve Barrels and Returning Tankers Ease the Squeeze
G7 leaders agreed Friday to a 4-month release coordinated by the International Energy Agency (IEA). A statement from French President Emmanuel Macron’s office said diesel releases would be front-loaded into the first 20 days. The deal came after pressure from US President Donald Trump.
“Facing unprecedented volatility in oil markets–with surging prices threatening economic stability and the well-being of our citizens–we have agreed on decisive, coordinated measures to stabilise immediate energy supplies, shield households and businesses from price shocks, and strengthen the long-term resilience of global energy systems,” the statement said.
Gulf tanker flows have also recovered. Crude transits through the Strait of Hormuz hit a 7-day average of 13.5 million barrels per day in late September, CNBC reported, citing Kpler data.
Shipments from the wider region, including Red Sea routes, have climbed further. On 4 of the last 7 days of September, they topped pre-war levels, Kpler data cited by Reuters showed.
Tim Waterer, chief analyst at KCM Trade, pointed to both factors.
“The G7 decision to tap strategic reserves is taking some of the immediate supply anxiety out of the price, while there’s a growing view that Saudi export volumes are moving back toward pre-war levels, even if those barrels are still moving at higher cost and via less efficient routes,” he said.
Bitcoin and Gold Break From Oil While Tankers Stay Exposed
Bitcoin (BTC) and gold moved against oil on Monday. BTC rose 1.55% to $86,254, BeInCrypto Markets data showed, while gold edged up 0.23% to $4,149.70 an ounce.
Both have lagged crude over the past year. Brent is up 55.06% from a year ago, while gold has gained 4.71%. Bitcoin is down 29.4% over the past year.
Tanker attacks still threaten that supply recovery. Shipping intelligence firm Marisks logged at least 7 incidents near Hormuz, including a reported strike on Kuwaiti tanker Kazimah III. It said Iranian forces may be firing into a predetermined engagement zone.
On land, the Houthis said they fired ballistic missiles and drones at Saudi Aramco sites in Riyadh and Khurais.
The diesel-heavy first phase of the G7 release is due within 20 days. Its arrival will test whether reserve barrels can offset the continued attacks.
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The post Oil Slips After G7 Agrees to Release 100 Million Barrels From Emergency Reserves appeared first on BeInCrypto.
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