Oil prices remained above $100 a barrel on Monday as investors monitored the US-Iran conflict, while higher Middle East exports and plans by G7 countries to release oil reserves helped ease some supply concerns.
Brent crude futures declined 0.52% to $101.70 a barrel. US West Texas Intermediate crude fell 0.92% to $90.27 a barrel.
According to experts, a sustained fall in crude prices would require an improvement in the geopolitical situation and progress towards peace talks.
G7 oil reserves could boost supply
The US has pushed European countries to release oil reserves to increase market supply. G7 countries are expected to release around 100 million barrels of oil and diesel reserves over four months, although the prospect has yet to trigger a significant decline in crude prices.
Rising Middle East exports and the planned release of strategic reserves have partly offset fears of disruptions to Gulf oil infrastructure and shipping.
Meanwhile, Iran has reiterated that it does not want to start a war but could escalate the situation if forced to do so. US President Donald Trump has not indicated whether Washington will pursue military action or negotiations with Iran.
Iran's Parliament Speaker Mohammad Bagher Ghalibaf has said that the Strait of Hormuz would remain closed until the United States agrees to its seven demands based on the 14-point June Memoranda of Understanding between the warring countries.
In September, Iranian Foreign Minister Abbas Araghchi said Tehran would reopen the Strait of Hormuz within a week if Washington accepted Tehran’s terms outlined in the June US-Iran memorandum.
The plan was subsequently rejected by US President Donald Trump, who said the US already has ‘total control’ over the vital waterway.
