Jakarta, ThedailyID — Global oil prices fell on Monday, October 5, after G7 countries agreed to release crude oil and diesel from emergency reserves.
Brent crude futures fell 35 cents, or 0.34%, to US$101.90 per barrel. US West Texas Intermediate, or WTI, dropped 62 cents, or 0.68%, to US$90.49 per barrel.
Brent gave back most of its gains from the previous week. WTI also fell 1.6% last week.
On Friday, October 2, G7 countries agreed to release 100 million barrels of crude oil and diesel from emergency reserves.
The group also pledged not to impose energy export restrictions after pressure from US President Donald Trump.
The release comes as crude exports from the Middle East increase. Exports reportedly returned above pre-war levels in late September despite attacks on vessels around the Strait of Hormuz.
KCM Trade Chief Analyst Tim Waterer said the G7 decision helped ease concerns about short-term supply disruptions.
He also pointed to signs that Saudi oil exports were gradually recovering to pre-war levels. However, shipments still face higher costs because exporters must use less efficient routes.
“That combination is enough to pressure prices for now, although the risk of further damage to energy infrastructure around the Gulf remains,” Waterer said as quoted on Monday, October 5.
Saudi Aramco also unexpectedly cut its official selling prices for crude shipments to Asian markets in November. The prices reached their lowest level in six years.
Geopolitical tensions, however, continue to cloud the outlook for future oil supplies.
The Houthis claimed they had launched ballistic missiles and drones at Saudi Aramco facilities in Riyadh and Khurais. The group said the attacks came after 50 air and missile strikes by the Saudi-led coalition in Yemen within 12 hours.
Yemen’s internationally recognized government also launched a major military operation on Sunday, October 4, to retake territory controlled by the Houthis.
The unstable geopolitical situation has also prompted OPEC+ to delay its review of members’ 2027 oil production quotas, according to the source.
Meanwhile, supply risks also remain in Europe. Ukrainian President Volodymyr Zelenskyy plans to increase attacks on Russian oil refineries, according to the report.
