Oil prices were largely steady on Tuesday after recovering from earlier losses, as traders weighed stronger Middle East crude exports against ongoing geopolitical supply risks.
The market was also assessing plans by Group of Seven countries to release emergency diesel and crude oil reserves in an effort to ease pressure on energy prices.
Brent crude futures slipped 0.3% to $100.03 per barrel, while U.S. West Texas Intermediate crude gained 0.2% to $89.59.
Brent Crude Trades Near $100
Brent remained close to the psychologically important $100-per-barrel level and was on track for its lowest closing price since September 22.
PVM analyst John Evans said the market is losing some of the factors that previously supported prices well above $100.
Improving crude flows from the Middle East have helped reduce concerns about an immediate supply shortage.
Middle East Oil Exports Increase
Around 12 million barrels per day of crude oil and 2 million barrels per day of refined products have left the Middle East on tankers during the past seven to 10 days, according to Vitol.
The increase in shipments has helped ease pressure on the global oil market.
Saudi Arabia has also increased the use of its East-West Pipeline, which transports crude to the Red Sea export hub of Yanbu.
Saudi Energy Minister Prince Abdulaziz bin Salman said flows through the pipeline had reached 5.8 million barrels as of Tuesday morning.
Middle East Supply Risks Remain
Despite improving export flows, oil prices remain supported by the risk of further disruptions in the region.
Saudi airports in Jazan and Najran were targeted in attacks on Monday evening, leaving three people injured and causing limited damage.
The incidents came as fighting intensified between Saudi-backed Yemeni forces and Iran-backed Houthi militants.
Saudi Arabia has also increased airstrikes in support of an offensive aimed at reclaiming territory from the Houthis.
The Saudi-led coalition separately said it intercepted and destroyed a ballistic missile launched by the group.
G7 Prepares Emergency Oil Reserve Release
The International Energy Agency is expected to meet next week to discuss the details of a planned release from emergency energy reserves.
The move comes as diesel shortages and record-high fuel prices create growing economic and political concerns.
Diesel plays a major role in transportation, agriculture and industrial activity, making elevated prices especially important for the broader economy.
Conflicts involving Iran and Ukraine have disrupted exports and damaged refining capacity, adding further pressure to fuel markets.
G7 Agrees to Release 100 Million Barrels
The Group of Seven economies agreed to release 100 million barrels of crude oil and diesel from emergency reserves.
The countries also pledged to avoid imposing new energy export restrictions.
However, the G7 has not yet provided a detailed breakdown of how much crude, diesel or other fuel products each country will contribute.
This uncertainty has left traders waiting for additional information from the IEA.
EIA Sees Oil Supply Falling in 2026
The U.S. Energy Information Administration also released new projections for global oil supply and demand.
The EIA expects world petroleum production to decline from a record 106.3 million barrels per day in 2025 to 101.1 million barrels per day in 2026.
Global oil demand is also forecast to fall from 104.4 million barrels per day in 2025 to 102.4 million barrels per day in 2026.
However, both supply and demand are expected to rebound in 2027.
The EIA projects global production will rise to a record 109.6 million barrels per day, while consumption could reach 104.6 million barrels per day.
U.S. Crude Inventories in Focus
In the United States, traders are also watching the latest weekly inventory reports.
Analysts estimate that U.S. crude stockpiles increased by approximately 1.8 million barrels during the week ending October 2.
If confirmed, it would mark the first time since August that crude inventories increased for three consecutive weeks.
The figure would compare with a 3.7 million-barrel increase during the same week last year and a five-year average build of around 1.7 million barrels.
For now, oil prices remain caught between improving Middle East exports and the continuing risk of supply disruptions across the region.
