Global oil prices traded mixed on Tuesday, with Brent crude hovering around $100 a barrel as increased Middle Eastern exports and a planned release of emergency fuel reserves by the Group of Seven (G7) economies eased immediate supply concerns, offsetting renewed fears of disruption from escalating hostilities involving Yemen’s Iran-backed Houthis.
Brent crude futures fell 29 cents, or 0.3 percent, to $100.03 a barrel, putting the international benchmark on course for its lowest close since September 22. US West Texas Intermediate (WTI) crude, however, rose 16 cents, or 0.2 percent, to $89.59 a barrel.
“The price of the global crude benchmark, Brent, is once again toiling around $100/barrel, as its reasons for trading much beyond the psychological 3-digit mark are being eroded … for now the assumption of more crude getting through has dampened price fervour,” said John Evans, an analyst at oil broker PVM.
Vitol’s chief executive said around 12 million barrels per day of crude oil and two million barrels per day of refined products had left the Middle East on tankers over the preceding seven to 10 days. The additional flows have helped moderate price pressure as traders assess the extent of supply available despite the regional conflict.
Saudi Energy Minister Prince Abdulaziz bin Salman also said oil transported through the kingdom’s East-West Pipeline to the Red Sea export hub of Yanbu had reached 5.8 million barrels as of Tuesday morning.
However, the prospect of further attacks and disruption to regional energy infrastructure has limited the decline in prices, leaving traders sensitive to developments across the Middle East.
The market’s cautious tone followed attacks on Saudi Arabia’s airports in Jazan and Najran on Monday evening, which injured three people and caused limited damage, according to the Saudi aviation authority.
The incidents came as Saudi-backed Yemeni government forces intensified an offensive to retake territory from the Houthis following weeks of rebel advances, with Riyadh increasing airstrikes in support of the campaign.
The Saudi-led coalition separately said it had intercepted and destroyed a ballistic missile launched by the Houthis.
The escalation has added to concerns over the security of energy infrastructure and export routes at a time when the conflict involving Iran has already disrupted regional oil flows.
Attention has also shifted to the planned release of emergency diesel and crude oil stocks by major industrialised economies, following the G7’s agreement on Friday to make 100 million barrels available from strategic reserves.
The group also pledged to refrain from imposing energy export restrictions, but did not specify how much of the planned release would comprise crude oil, diesel or other petroleum products, or identify the participating countries and their respective contributions.
The International Energy Agency is expected to meet next week to work out details of a diesel stock release, as uncertainty grows over how much fuel the United States and European countries will supply to ease shortages and record-high prices.
The US Energy Information Administration projected on Tuesday that global petroleum production would fall from a record 106.3 million barrels per day in 2025 to 101.1 million barrels per day in 2026 as the war involving Iran disrupts Middle Eastern supplies.
Global oil demand is also projected to decline, from a record 104.4 million barrels per day in 2025 to 102.4 million barrels per day in 2026, reflecting a market adjusting to supply constraints and elevated energy costs.
The agency expects both production and consumption to recover in 2027, with output rising to a record 109.6 million barrels per day and demand reaching 104.6 million barrels per day.
