OIL PRICES FALL AS G7 PREPARES EMERGENCY RESERVE RELEASE

Global oil prices fell on Monday after crude exports from the Middle East increased and the Group of Seven announced plans to release 100 million barrels of crude and diesel from emergency reserves.

Brent crude futures declined by $1.20, or 1.17 per cent, to $101.05 a barrel, while West Texas Intermediate fell by $1.16, or 1.27 per cent, to $89.95 a barrel.

Shipping data showed that Middle Eastern crude exports exceeded pre-war levels on four of the seven days in the final week of September, despite continued risks around the Strait of Hormuz.

The additional supply from the region, combined with the planned G7 reserve release, put downward pressure on prices.

The G7 agreement followed concerns over energy supply disruptions linked to the conflict in the Middle East. The group also pledged to avoid energy export restrictions.

However, supply risks remain as fighting continues in parts of the region. Saudi Aramco CEO Amin Nasser warned that crude and refined fuel supplies could remain tight and that rebuilding global inventories after emergency withdrawals could take up to two years.

The United States Strategic Petroleum Reserve stood at 283 million barrels last week, its lowest level since October 1982, according to US Department of Energy data.

OPEC+ has also postponed a review of its 2027 oil production quotas following disruptions to projects aimed at expanding Middle Eastern production capacity.