Crude Oil Retreats From US$100 Per Barrel As G7 Signals Readiness To Release Emergency Reserves

By Siti Radziah Hamzah

KUALA LUMPUR, March 10 (Bernama) -- Oil prices retreated from their highest level since 2022 to below US$100 per barrel on Tuesday after the Group of Seven (G7) signalled its readiness to release emergency reserves, easing some of the market anxiety triggered by the escalating conflict between the United States and Iran. 

At the time of writing, Brent crude fell 6.33 per cent to US$93.08 per barrel while West Texas Intermediate (WTI) declined 6.39 per cent to US$88.71 per barrel.

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On Monday, the international benchmark Brent crude surged to as high as US$119.50 per barrel, its highest level since the period following Russia’s invasion of Ukraine in 2022.

WTI, the US benchmark for light sweet crude, also climbed to about US$119.48 per barrel before both benchmarks later retreated below the US$100 level.

The market turned highly volatile as the US and Israel’s conflict with Iran threatened oil production and shipping routes in West Asia, raising concerns over global energy supplies.

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Volatility was further amplified after Iran named Mojtaba Khamenei, the son of Supreme Leader Ali Khamenei, as successor to the country’s top leadership position, signalling continued defiance amid ongoing bombardment by US and Israeli forces.

SPI Asset Management managing partner Stephen Innes said calm remained the market’s default state until the next geopolitical shock, noting that comments by US President Donald Trump and the G7’s contingency planning had helped temper immediate escalation risks.

However, he added that the underlying structural tensions surrounding the Strait of Hormuz remained unresolved.

Innes said that following Monday’s sharp spike, oil prices were likely to overshoot emotionally to the upside before potentially correcting lower as traders search for equilibrium pricing.

"Right now, the tape is balancing two forces: the known barrels missing from normal flows versus a declining geopolitical risk premium as the 'no end in sight' narrative cools. But the bigger backdrop has not changed. We are still in a war until a ceasefire or surrender flag is raised.

"In other words, the market may look calmer today, but it is still sitting on a powder keg," he told Bernama.

The volatility in oil prices also weighed on Bursa Malaysia yesterday, with the FBM KLCI falling 43.89 points, or 2.56 per cent, to close at 1,674.17 from last Friday’s 1,718.06.

However, the benchmark index rebounded in early trading today after Trump signalled that the conflict with Iran could end soon.

Meanwhile, G7 finance ministers and International Energy Agency (IEA) executive director Fatih Birol held a videoconference on Monday to discuss the sharp market volatility.

Following the meeting, Birol said market conditions had deteriorated in recent days and participants discussed all available options, including the potential release of the IEA’s emergency oil reserves if necessary.

IEA member countries are required to maintain oil reserves equivalent to at least 90 days of net imports to ensure a coordinated response to severe supply disruptions in global oil markets.

Meanwhile, BMI, a unit of Fitch Solutions, said it is reviewing its 2026 outlook for Brent crude in light of the latest developments and expects an upward revision to its current annual average forecast of US$67 per barrel.

"Based on a preliminary exploration of the data, a revision into the range of US$70 to US$75 per barrel would appear consistent with our mid-case scenario. Were we to shift into the high case, aligning with a more prolonged, multi-month war, larger revisions into the range of US$80 to US$90 per barrel could be expected," it said in a research note today.

-- BERNAMA