DTN Oil Update
Oil Steadies as Market Weighs G7 Oil Release, Yemen Risks
VIENNA (DTN) -- Oil prices were mixed Monday morning, with signs of Middle Eastern supply recovery and the announcement of a large-scale release from emergency reserves weighing on crude prices, while a flare-up in fighting in Yemen and continued attacks on tankers in the Strait of Hormuz capped losses.
By 7:30 a.m. EDT, ICE Brent for December delivery was down $0.40 to trade near $101.85 bbl, and NYMEX WTI for November delivery fell $1.38 to $89.73 bbl.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
Downstream, NYMEX RBOB for November delivery retreated $0.0394 to $3.2730 gallon. ULSD futures bucked the trend, with the front-month contract advancing $0.0467 to $4.5478 gallon.
The U.S. Dollar Index strengthened by 0.3 points to 102.015 against a basket of foreign currencies, the highest since April 2025.
On Friday, leaders of the Group of Seven nations announced a joint release of 100 million bbl of crude oil and diesel from emergency stockpiles. The decision came the day after the Trump administration urged European countries to release diesel reserves or be cut off from vital U.S. flows. In reaction to the G7 announcement, the White House said it will shelve plans for a possible U.S. diesel export ban.
Reports based on ship-tracking data, meanwhile, suggested that Middle Eastern crude oil exports have recently caught up or even surpassed pre-war levels. Threats to the region's vital shipping lanes, however, have not subsided. Tankers continued to be struck in the Strait of Hormuz over the weekend, and Riyadh-backed Yemeni forces on Sunday launched an offensive to wrest control of Bab al-Mandab from the Houthis. The Tehran-allied militia last month took over the chokepoint connecting the Red Sea to the Indian Ocean, putting Saudi oil exports at greater risk.
The Houthis on Monday also claimed to have launched new attacks against Saudi energy infrastructure, although the kingdom has so far not reported any damages. Saudi energy assets have been the target of frequent drone and missile attacks from groups in Yemen and Iraq, leading to a two-week shutdown of the East-West pipeline and suspension of oil exports from the Red Sea last month.
Saudi Aramco, meanwhile, unexpectedly slashed official selling prices to Asia for November. The steepest discount since 2020 may be part of an attempt to keep Saudi oil competitive amid expensive ship-to-ship transfers and dirty tanker rates rocketing to record highs, but still raised concerns about Asian oil demand, the region most affected by the seven-month long ongoing crisis.
(c) Copyright 2026 DTN, LLC. All rights reserved.