West Texas Intermediate crude futures on the New York market edged only slightly higher on Tuesday, October 6, after falling sharply during the session on reports of increased oil exports from the Middle East and a G7 decision to release 100 million barrels of diesel and crude from emergency reserves, along with a pledge not to impose restrictions on energy exports after pressure from U.S. President Donald Trump. November-delivery WTI crude rose 1 cent, or 0.01%, to close at 89.44 dollars per barrel, while December-delivery Brent crude rose 26 cents, or 0.26%, to close at 100.58 dollars per barrel. The chief executive of Vitol said that over the past 7 to 10 days, about 12 million barrels per day of crude and another 2 million barrels per day of refined products were shipped out of the Middle East by tankers. Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, said volumes shipped through Saudi Arabia's East-West Pipeline stood at as much as 5.8 million barrels as of Tuesday morning. However, the conflict between Saudi Arabia and Iran-backed Houthi forces in Yemen continues to worry investors about a possible disruption to oil supply from Saudi Arabia, the region's largest oil exporter. Meanwhile, talks between the United States and Iran remain stalled, and Saudi Arabia's aviation authority said Saudi airports in Jazan and Najran were targeted twice on Monday evening, injuring 3 people and causing damage, though it was limited. Investors are watching today's release of crude stockpiles from the U.S. Energy Information Administration, with analysts expecting crude inventories to rise by 1.7 million barrels in the week ending October 2.
G7 reserve release and increased Middle East crude/product exports add supply, weighing on Brent.
G7 releasing 100 million barrels from emergency reserves and rising Middle East exports boost crude supply, pressuring WTI.
