G7 releases 100 million barrels of oil, pushing crude prices down

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Summary · why it matters

The G7 group agreed to release a combined 100 million barrels of diesel and crude oil from reserves, pledging not to use energy export restriction measures after being pressured by President Donald Trump. As a result, the West Texas crude contract for November delivery closed at 89.43 dollars per barrel, down 1.68 dollars, or 1.84%, and the North Sea Brent crude contract for December delivery closed at 100.32 dollars per barrel, down 1.93 dollars, or 1.89%. Meanwhile, oil exporters in the Arabian Gulf region have resumed exporting oil at levels higher than before the war broke out in September. Preliminary data from Kpler indicated that the 7-day moving average of crude oil exports from the region stood at 18.3 million barrels per day as of September 30. ASEAN energy ministers are preparing to meet in Manila, the Philippines, this week amid risks from the Middle East war. ASEAN imports more than half of the crude oil for its refineries from the Middle East and is expected to review regional energy security measures under the ASEAN Petroleum Security Agreement, or APSA.

Impact on assets 3

Others▼
⛏Crude Oil WTI Futures
WTI
▼ NegativeSupplyrelevance

G7 releasing 100 million barrels of crude/diesel from reserves boosts supply, pushing WTI down 1.84%.

⛏Heating Oil Futures
HEATOIL
▼ NegativeSupplyrelevance

The G7 release explicitly includes 100 million barrels of diesel, adding distillate supply that weighs on heating oil.