Dubai – Crude oil prices dropped by more than 1% during Monday trading sessions on October 5, 2026. This decline marks the second consecutive day of losses as market indicators point to rising global supplies. The downward pressure intensified following reports of increased crude exports from the Middle East region. Additionally, the Group of Seven nations released strategic petroleum reserves, further bolstering available inventory. These factors offset earlier fears regarding potential damage to Gulf infrastructure amid ongoing US-Israeli hostilities against Iran. Oil prices had closed lower on Friday, October 2, giving up recent gains. By 06:00 GMT, Brent crude futures for December delivery fell 0.82% to $101.41 per barrel. West Texas Intermediate November contracts dropped 1.44% to $89.80 per barrel. Brent recorded a weekly gain of 4.9%, while WTI declined 1.4%. The G7 agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves. They also pledged to avoid export restrictions after pressure from President Donald Trump. Middle East crude exports rose above pre-war levels in four of seven days last September. Tim Water of KCM Trade stated that strategic releases ease immediate supply concerns. He noted Saudi exports are returning to pre-war volumes despite higher costs. However, risks to Gulf energy infrastructure remain unresolved. Houthi forces launched ballistic missiles and drones at Aramco sites in Riyadh and Khurais. This followed claims of 50 Saudi airstrikes in Yemen over twelve hours. The internationally recognized Yemeni government announced a major military campaign to reclaim Houthi-held areas. Meanwhile, Aramco unexpectedly cut Saudi crude prices for November in Asia to a six-year low. ING analysts noted Brent remains above $100 due to geopolitical tensions. OPEC+ postponed reviewing 2027 production quotas due to war disruptions. Iranian conflicts have halted expansion projects across the Middle East. This has created uncertainty regarding future production capacity estimates. Ukrainian President Volodymyr Zelensky announced plans to double attacks on Russian oil refineries in Europe.
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