Oil prices fall as Middle East crude exports rise; Brent settles at $100.32
In short
Brent crude settled at $100.32 a barrel, down $1.93 or 1.89%, and US West Texas Intermediate fell to $89.43, down $1.68 or 1.84%, WAM reported. Gulf News said markets were weighing improving Middle East oil flows against continuing security risks around the Strait of Hormuz. The two outlets gave different WTI levels and changes for the session.
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Oil prices fell, with Brent crude settling at $100.32 a barrel, down $1.93, or 1.89%, WAM reported. US West Texas Intermediate dropped $1.68, or 1.84%, to $89.43 a barrel, the state news agency said. [ 1 , 2 ]
Gulf News, reporting early Asian trading on Tuesday, said markets were weighing improving Middle East oil flows against persistent security risks around the Strait of Hormuz. At about 8:30 am Tokyo time, it quoted WTI at $89.18 a barrel, down 25 cents, or 0.28%, and Brent at $100.30, down $1.93, or 1.89%. Abu Dhabi's Murban crude was at $109.10, down $1.73, or 1.56%, the outlet said. [ 2 ]
WAM attributed the decline to an increase in crude exports from the Middle East. Gulf News, citing Reuters, said Middle Eastern crude flows surged in the final week of September, with exports exceeding 18 million barrels per day on several days — above pre-war levels — as producers maintained exports despite the continuing US-Israeli war with Iran and threats to shipping through Hormuz. [ 1 , 2 ]
The market is also digesting a Group of Seven plan to release 100 million barrels of crude and fuel from emergency reserves over four months, including a substantial diesel release during the first 20 days, Gulf News reported. It said Saudi Arabia has cut its November official selling prices for Asian buyers, with Arab Light offered at a discount of as much as $5 a barrel to regional benchmarks, which the outlet described as a sign producers are competing aggressively for market share despite elevated shipping costs. [ 2 ]
Gulf News said the oil market remains vulnerable to fresh shocks, noting that tanker attacks and security incidents around the Strait of Hormuz continue to raise insurance, freight and routing costs. [ 2 ]
Why it matters
Brent holding just above $100 a barrel keeps fuel costs and producer revenues near recent levels, and both outlets treat the direction of the market as the main point of interest. Gulf News said the market remains vulnerable to fresh shocks, with security incidents around the Strait of Hormuz raising insurance, freight and routing costs.
Key facts
- Brent crude fell $1.93, or 1.89%, to settle at $100.32 a barrel. [ 1 , 2 ]
- US West Texas Intermediate fell $1.68, or 1.84%, to $89.43 a barrel, according to WAM. [ 1 ]
- Gulf News quoted WTI at $89.18 a barrel, down 25 cents, at about 8:30 am Tokyo time, and Brent at $100.30, down 1.89%. [ 2 ]
- Abu Dhabi's Murban crude was at $109.10, down $1.73, or 1.56%, Gulf News said. [ 2 ]
- WAM said the decline came as crude exports from the Middle East increased. [ 1 ]
- Gulf News, citing Reuters, said Middle Eastern crude flows surged in the final week of September, with exports exceeding 18 million barrels per day on several days, above pre-war levels. [ 2 ]
- Gulf News reported a Group of Seven plan to release 100 million barrels of crude and fuel from emergency reserves over four months, including a substantial diesel release in the first 20 days. [ 2 ]
- Saudi Arabia cut its November official selling prices for Asian buyers, with Arab Light offered at a discount of as much as $5 a barrel to regional benchmarks, Gulf News reported. [ 2 ]
Confirmed by several sources
Still unclear
- The level and change of US West Texas Intermediate crude for the session. WAM reported WTI dropped $1.68, or 1.84%, to $89.43, while Gulf News quoted it at $89.18, down 25 cents, at about 8:30 am Tokyo time — different figures quoted at different points in the session.
- The scale and persistence of the rise in Middle East crude exports. Single-source: the figures on exports exceeding 18 million barrels per day come only from Gulf News, which attributed them to Reuters.
- Whether the Group of Seven emergency reserve release will proceed as described. Single-source: the plan is reported only by Gulf News, which gave no decision date or confirmation of implementation.
What local media are saying
Timeline, local time
- WAM reports Brent settled at $100.32 a barrel, down $1.93 or 1.89%, and WTI fell $1.68 or 1.84% to $89.43, attributing the fall to increased Middle East crude exports. [ 1 ]
- Gulf News reports that at about 8:30 am Tokyo time WTI was quoted at $89.18, down 25 cents, and Brent at $100.30, down 1.89%. [ 2 ]
- Gulf News publishes its report on the decline, citing Middle East export flows, G7 reserve plans and Saudi pricing. [ 2 ]