SINGAPORE / RankWire.AI / – Oil prices traded close to $102 per barrel on Monday following an early surge that pushed Brent above $103. Brent crude futures were at $102.30 a barrel at 0900 GMT, reflecting a 5-cent increase. Meanwhile, U.S. West Texas Intermediate crude traded at $90.62, down 49 cents, or 0.5%. The initial rise was driven by renewed security worries that drew attention to Saudi energy facilities and regional shipping routes. However, this early upward momentum diminished as regional exports recovered and emergency stock releases increased supply in the market.
During early Asian trading, Brent briefly touched $103.06 a barrel, gaining 81 cents, or 0.79%. WTI increased by 46 cents, or 0.50%, to $91.57 before losing those gains. Yemen’s Iran-backed Houthis announced they launched ballistic missiles and drones at Saudi Aramco facilities in Riyadh and Khurais. This claim heightened concerns over attacks on energy infrastructure and commercial shipping in the Middle East.
Additionally, the Group of Seven moved to bolster emergency petroleum supplies. G7 governments agreed to release 100 million barrels of crude, diesel, and other petroleum reserves through the International Energy Agency. The plan will unfold over four months, with a significant portion of diesel entering the market during the initial 20 days. This decision follows months of disruptions to crude flows, fuel supplies, and shipping routes across key regional corridors.
Regional crude exports increase despite ongoing security threats
In September, Middle Eastern crude shipments grew even as attacks persisted along major maritime routes. Data from Kpler and Vortexa indicated regional exports averaged nearly 18.3 million barrels daily during the month. On several days, shipments reached approximately 18.6 million barrels per day, surpassing pre-conflict levels. Saudi Arabia expanded exports through Gulf and Red Sea pathways, while Iraqi tanker movements also improved.
The Strait of Hormuz remains one of the world’s most critical energy transit points, handling nearly one-fifth of global crude oil and LNG traffic. During the conflict, commercial vessels have been repeatedly targeted in Gulf waters and nearby shipping lanes. As a result, freight and insurance premiums have surged, leading to higher transportation costs for Middle East crude to key refining hubs, especially across Asia.
Pricing adjustments by Saudi Arabia as emergency supplies enter the market
Saudi Aramco lowered November crude prices for Asian clients but increased prices for northwest Europe and the Mediterranean. The company set the Arab Light price for Asia at $5 a barrel below the Oman and Dubai benchmark average, representing a $3 decrease from October. This marked the largest discount for this grade since June 2020. Heavier crude grades for Asian markets were also discounted by Saudi Aramco, whereas prices for U.S. customers remained steady.
Monday’s trading reflected a market balancing stronger regional exports with ongoing risks to production and shipping. Despite the G7 stock release and September’s increased shipments, Brent stayed above $100 at 0900 GMT. WTI, after initially rising, fell back below $91. Oil traders faced fluctuating Saudi pricing, rising freight expenses, and changing emergency inventories. Security issues along major Middle Eastern export routes continue to influence global crude prices significantly.