Oil prices fall 1.8% as Saudi Arabia ramps up exports, G7 pledges reserve release

Oil prices fell for a second consecutive trading day Monday (local time) as news emerged of rising crude exports from the Middle East and a G7 agreement to release strategic reserves.

Brent crude for December delivery closed down 1.89 percent at $100.32 per barrel on the ICE Futures Exchange. West Texas Intermediate for November delivery settled 1.84 percent lower at $89.43 per barrel on the New York Mercantile Exchange.

Prices retreated after shipping data firm Kpler reported that the seven-day moving average of crude exports from the Middle East reached 18.3 million barrels per day as of Sept. 30. Middle Eastern crude exports also exceeded pre-US-Iran war levels on 14 separate days last month.

The export rebound reflected Saudi Arabia increasing shipments through both the Red Sea and the Persian Gulf after its east-west pipeline came under attack. Following the strike, Saudi Arabia found an alternative route by transshipping crude off the Omani coast, and after quickly repairing the pipeline, resumed Red Sea exports as well.

The G7's earlier agreement to release 100 million barrels from strategic reserves also weighed on prices. "While oil tankers are still exposed to risk, there is an expectation that more crude will ultimately reach the market," said Andrew Lipow, president of Lipow Oil Associates.

However, analysts noted that supply-side concerns continue to limit further downside, with US strategic petroleum reserve stockpiles having fallen to their lowest level since 1982.