Oil prices slip as traders weigh strong Mideast exports against Gulf tensions

Oil Prices Slip Amid Robust Middle East Exports and Gulf Tensions

By Sumit Saha

Market Reactions and Supply Dynamics

Oct 6 (Reuters) - Oil prices down on Tuesday as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns, though attacks by Yemen's Houthis on Saudi targets kept traders wary of risks to Gulf supplies.

Price Movements

Brent crude futures lost 4 cents to $100.28 a barrel by 0003 GMT, while US West Texas Intermediate crude futures fell 11 cents, or 0.1%, to $89.33 a barrel.

Analyst Insights

"Oil is little changed after yesterday's decline as traders continue to digest a modest easing in supply-side anxiety," said KCM Trade chief analyst Tim Waterer.

"The pickup in Saudi export numbers and the G7 decision to release strategic reserves are helping keep a lid on prices for now, even while Brent remains anchored around the $100 level," he said.

Middle Eastern Exports and G7 Actions

Export Resilience

Crude exports from the Middle East exceeded pre-war levels on four days during the last week of September, shipping data showed on Monday, underscoring the resilience of regional oil flows despite attacks on ships passing through the Strait of Hormuz.

G7 Emergency Stockpile Release

Further easing supply concerns, G7 countries agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves and pledged to refrain from energy export restrictions after pressure from US President Donald Trump.

Geopolitical Risks in the Gulf

Saudi-Houthi Conflict

However, the conflict between Saudi Arabia and Iran-backed Houthi forces in Yemen continued to fuel concerns over potential disruptions to supply from the region's largest oil exporter amid a stalemate in US-Iran talks.

Recent Houthi Attacks

Yemen's Houthis said on Monday they had carried out attacks on several sites in Saudi Arabia, including King Khalid International Airport in Riyadh, an Aramco refinery in Rabigh and Abha airport. There was no immediate Saudi confirmation.

Market Outlook

Without a clear diplomatic breakthrough or a further material improvement in export efficiency, the floor under prices looks reasonably firm, Waterer said.

(Reporting by Sumit Saha in Bengaluru; Editing by Sonali Paul)