SINGAPORE: Oil prices edged lower at the start of the trading week as increased crude exports from the Middle East and a decision by the Group of Seven (G7) nations to release oil from emergency reserves eased immediate concerns over global supplies. However, uncertainty remains elevated as the risk of further damage to oil infrastructure in the Gulf persists amid the ongoing war involving Iran.
Brent crude futures fell by 35 cents, or 0.34%, to $101.90 a barrel. US West Texas Intermediate (WTI) crude also declined by 62 cents, or 0.68%, to $90.49 a barrel.
Most of Brent’s gains from the previous week have been erased, while WTI recorded a 1.6% decline on a weekly basis.
A key factor weighing on oil prices is the G7 decision to release a total of 100 million barrels of crude oil and diesel from emergency reserves into the market. The move is expected to add to global supplies and ease some of the immediate pressure on the oil market.
Market analysts said the additional oil from strategic reserves has helped reduce near-term concerns over supply shortages. However, continued tensions in the Gulf region and the threat of further damage to energy infrastructure could keep oil prices volatile in the days ahead.
