Oil falls as Middle East crude exports recover and G7 releases reserves
Version 3: A third Korean outlet, Newsis, has now reported the same oil price decline on the same two causes, adding no new figures to the picture.
In short
Brent crude for December delivery fell 1.89% to $100.32 a barrel and US West Texas Intermediate for November fell 1.84% to $89.43 on October 5, Yonhap reported, as Middle East crude exports increased and G7 countries moved to release emergency reserves. Newsis also reported a decline in the 1% range on the same two factors. Separately, US President Donald Trump said high gasoline prices are now caused by refinery capacity rather than the Strait of Hormuz, and shipping through Hormuz remains disrupted by shuttle transfers, high tanker charter rates and recent attacks on merchant vessels.
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International oil prices fell for a second straight session on October 5 as Middle East crude exports increased and G7 countries moved to release emergency reserves. Yonhap reported that ICE December Brent settled down 1.89% at $100.32 a barrel and that NYMEX November West Texas Intermediate fell 1.84% to $89.43. Asia Economy put the same session's declines at about 1.9% for Brent and 1.8% for WTI, with identical closing prices, and Newsis reported a decline in the 1% range on the same two factors. [ 2 , 3 , 4 ]
Shipping data firm Kpler said the Middle East's seven-day moving average crude exports reached 18.3 million barrels per day as of September 30, and Yonhap said exports exceeded pre-war levels on 14 days in September. Yonhap attributed the rebound partly to Saudi Arabia increasing loadings on both the Red Sea and Gulf sides after an attack on an east-west pipeline. Asia Economy, citing shipping data, said exports were above pre-war levels on four of the seven days in the final week of September. [ 2 , 3 ]
Both outlets cited the G7 decision on October 2 to release 100 million barrels of crude and diesel from strategic reserves. Andrew Lipow of Lipow Oil Associates told Yonhap that although tankers remain exposed to risk, “there is an expectation that more crude will be supplied to the market.” Tim Waterer of KCM Trade told Asia Economy that the G7 move “is easing short-term supply anxiety,” while warning that crude is “still being transported through higher-cost and inefficient routes” and that Gulf energy infrastructure remains at risk of further damage. Yonhap said further declines were limited by supply-side concerns, including US strategic petroleum reserves falling to their lowest level since 1982. [ 2 , 3 ]
US President Donald Trump wrote on Truth Social that the Strait of Hormuz is “no longer” what is driving gasoline prices, saying record volumes of crude are coming out of the region, and that “the problem is refineries,” blaming Russian refining capacity damaged by Ukraine and closures in Democratic-led states such as California, Asia Economy reported. The outlet said Trump has been assigning responsibility for higher energy prices to the Ukraine war and Democratic state energy policies ahead of midterm elections, and that he previously called on France, Germany and other European countries to release diesel reserves. [ 3 ]
Shipping through Hormuz has not fully normalised. Asia Economy reported that Gulf producers are using shuttle operations — sending very large crude carriers inside the strait to load and then transferring cargo to ships waiting outside — at a cost of $30 million to $40 million per operation, or $15 to $20 per barrel excluding insurance. VLCC charter rates from the Gulf to China rose from $231,400 a day before the war to more than $1.2 million at the end of September, it said, and nine merchant vessels were attacked near Hormuz over the past two weeks, killing one crew member and injuring two. [ 3 ]
Asia Economy also reported that Yemen's Houthi rebels claimed they fired ballistic missiles and drones at Saudi Aramco facilities in Riyadh and the Qurais area, a claim Saudi Arabia did not confirm. It added that Ukraine has said it will intensify attacks on Russian refining facilities, keeping concerns about petroleum product supply alive in Europe. [ 3 ]
Why it matters
Crude benchmarks set the cost of fuel, transport and imported goods, so a sustained decline in oil prices would ease pressure on consumers and inflation in importing economies such as South Korea. The documents also show the fall rests on temporary factors — a coordinated G7 reserve release and Gulf exports rerouted through far costlier shipping — so the relief could be short-lived if the security situation in the Gulf or attacks on Russian refining worsen.
Key facts
- ICE December Brent settled down 1.89% at $100.32 a barrel and NYMEX November WTI fell 1.84% to $89.43, according to Yonhap. [ 2 ]
- Asia Economy put the same session's moves at about 1.9% for Brent and 1.8% for WTI, with the same closing prices, while Newsis reported a decline in the 1% range. [ 2 , 3 , 4 ]
- G7 countries agreed on October 2 to release 100 million barrels of crude and diesel from strategic reserves, both Yonhap and Asia Economy state. [ 2 , 3 ]
- Shipping data firm Kpler put the Middle East's seven-day moving average crude exports at 18.3 million barrels per day as of September 30, Yonhap reported. [ 2 ]
- Yonhap said Middle East crude exports exceeded pre-war levels on 14 days in September; Asia Economy, citing shipping data, said exports were above pre-war levels on four of the seven days in the final week of September. [ 2 , 3 ]
- US President Donald Trump said on Truth Social that gasoline prices are no longer driven by the Strait of Hormuz but by refinery shortages, blaming Russian refining capacity damaged by Ukraine and closures in Democratic-led states such as California, Asia Economy reported. [ 3 ]
- US strategic petroleum reserves have fallen to their lowest level since 1982, Yonhap reported, which it said limited further price declines. [ 2 ]
- Gulf producers are using shuttle transfers outside Hormuz at $30 million to $40 million per operation, or $15 to $20 extra per barrel excluding insurance, and VLCC charter rates from the Gulf to China rose from $231,400 a day before the war to more than $1.2 million at the end of September, according to Asia Economy. [ 3 ]
Confirmed by several sources
- Brent and WTI crude futures fell for a second straight session on October 5, with Brent closing at $100.32 a barrel and WTI at $89.43. [ 2 , 3 , 4 ]
- The price decline followed an increase in Middle East crude exports and the G7 decision to release reserves. [ 2 , 3 , 4 ]
- The G7 agreed to release 100 million barrels of crude and diesel from strategic reserves. [ 2 , 3 ]
- Middle East crude export volumes rose above pre-war levels in September, though the documents measure this differently. [ 2 , 3 ]
Still unclear
- Yemen's Houthi rebels claimed they fired ballistic missiles and drones at Saudi Aramco facilities in Riyadh and the Qurais area, and Saudi Arabia has not confirmed the claim. Single source: only Asia Economy reports the claim, and the document itself says Saudi authorities did not confirm it.
- How far Middle East crude exports have actually recovered. The documents give different measures: Yonhap says exports beat pre-war levels on 14 days in September using Kpler data, while Asia Economy cites shipping data showing four of seven days in the last week of September.
- Whether shipping through the Strait of Hormuz has returned to normal. Asia Economy says crude is still moving on higher-cost, inefficient routes via shuttle transfers, a single-source detail.
What local media are saying
Timeline, local time
- Yonhap reports December Brent closed down 1.89% at $100.32 and November WTI down 1.84% at $89.43, citing rising Middle East exports and the G7 reserve release. [ 2 ]
- Asia Economy reports the same price falls alongside Trump's Truth Social comments blaming refinery capacity and details of continued disruption to Hormuz shipping. [ 3 ]
- Newsis reports the decline in the 1% range, also citing recovering Middle East crude exports and the G7 reserve release. [ 4 ]