Brent crude traded near $102.70 a barrel early Sunday, and West Texas Intermediate was near $93.90, after the G7 agreed to release 100 million barrels of oil and diesel and prices still refused to stay under $100. Invezz said Brent ended last week at $102.60, the highest close since 23 September. ILKHA marked Brent at $102.70 and WTI at $93.90 on Sunday morning. The G7, after a call chaired by French President Emmanuel Macron, said the release runs for four months, starts immediately, and includes a large diesel release in the first 20 days. The International Energy Agency will coordinate it. The IEA also said members have already released about 325 million barrels of a 400 million barrel collective action announced on 11 March, more than 80% of that pledge. The G7 did not say whether the new 100 million barrels includes the remaining 75 million from March or sits on top of it. Leaders also dropped a threatened ban on diesel exports among themselves.
A reserve release is not a Hormuz reopening
UKMTO warnings cited by Times Now said at least three tankers were struck by unidentified projectiles in and around the Strait of Hormuz from 1 October, including a crude tanker hit about four nautical miles east of Oman early Saturday. The American Automobile Association put the average U.S. diesel price at a record $6.50 a gallon at the end of last week, up from $5.61 a month earlier. Spot gold was bid at $4,137.62 early Sunday, about 0.7% under Friday's close. Kitco had already marked the metal more than 3% lower on the week after the jobs report. Bullion jumped on the soft payrolls print and then gave the gain back. The 10-year yield at 5.24% is the weight. A hold at the 28 October Fed meeting, now priced near 78%, does not pay a coupon. One hundred million barrels over four months is a stock draw, not a shipping lane. If tankers keep getting hit east of Oman, the diesel release in the first 20 days is the part that can move U.S. pump prices. Crude can stay above $100 while that diesel shows up. Gold near $4,138 is the same story as bitcoin near $84,860: October hike odds fell, and the long bond did not. See the 29,000 payroll print, bitcoin near $84,860, and last week's gold print near $4,119.