Oil Retreats After G7 Taps Emergency Stocks and Mideast Shipments Increase

Oil prices declined Monday after the G7 agreed to tap 100 million barrels from emergency reserves. Higher crude exports from the Middle East added to the supply relief.

Brent crude eased 0.55% to $101.69, and West Texas Intermediate (WTI) fell 1.04% to $90.16, according to Trading Economics data.

Reserve Release and Tanker Comeback Alleviate Market Squeeze

G7 leaders on Friday settled on a 4-month release coordinated by the International Energy Agency (IEA). Diesel infusions will be front-loaded in the first 20 days, according to a statement from French President Emmanuel Macron's office. The deal came after U.S. President Donald Trump applied pressure.

“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 G7 leaders' statement said.

Tanker traffic in the Gulf has bounced back as well. Citing Kpler data, CNBC reported that crude flows via the Strait of Hormuz touched a 7‑day average of 13.5 million barrels per day in late September.

Exports from the greater region, including those using Red Sea routes, have continued to increase. On four of the final seven days of September, those shipments outstripped pre-war levels, according to Kpler data cited by Reuters.

Both of those developments were highlighted by Tim Waterer, chief analyst at KCM Trade.

“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,” Waterer said.

Bitcoin and Gold Move Opposite Oil as Tankers Remain at Risk

Bitcoin (BTC) and gold tracked the other direction from oil on Monday. BeInCrypto Markets data showed BTC rose 1.55% to $86,254, while gold edged up 0.23% to $4,149.70 an ounce.

Crude has outperformed both over the past year. Compared with a year earlier, Brent crude has climbed 55.06%, gold has added 4.71%, and bitcoin has lost 29.4%.

That supply recovery remains at risk from strikes on tankers. Maritime intelligence firm Marisks counted at least seven incidents around Hormuz, among them an alleged strike on the Kuwaiti-flagged tanker Kazimah III. According to Marisks, Iranian forces may be firing into a pre-set engagement zone.

The Houthis reported launching ballistic missiles and drones at Saudi Aramco facilities in Riyadh and Khurais.

The first stage of the G7 release, heavy on diesel, is scheduled to be delivered within 20 days. This will put to the test whether the emergency reserves can compensate for the ongoing assaults.