Middle East tension and G7 reserve move impact on oil prices
While Gulf countries activating alternative routes and the G7's reserve move balance prices, experts have raised the price floor expectation to 70 dollars.
Despite the conflicts in the Middle East, the continuation of exports by Gulf countries through alternative routes and the G7's 100 million barrel reserve move are limiting sharp increases in oil prices. Brent crude is trading above 100 dollars while developments in the markets are being closely monitored.
Latest Status in Prices
Brent crude futures dropped to 100.28 dollars per barrel, while the barrel price of US West Texas Intermediate (WTI) crude fell to 89.33 dollars.
Gulf Countries Exports
According to Standard Chartered data, crude oil and condensate exports from the Gulf region, excluding Iran, reached approximately 16.5 million barrels per day in September, approaching pre-war levels.
Alternative Routes
While the share of the Strait of Hormuz dropped from 83 percent to 60 percent, alternative pipelines and ports began to be utilized. Saudi Arabia's total oil exports rose to approximately 6.9 million barrels per day in September.
G7 Reserve Move
G7 countries decided to release 100 million barrels of diesel and crude oil from emergency reserves into the market and pledged not to impose restrictions on energy exports.
Floor Expectation and Iran
ConocoPhillips Chairman Ryan Lance stated that he expects the floor for oil prices to rise to about 70 dollars per barrel. Meanwhile, Iran's seaborne crude oil exports fell to nearly zero in September.