Oil Prices Plummet Below $102 as Saudi Exports Recover

Oil prices continued to fall for the fourth consecutive day on Monday, dropping below $102 per barrel. The decline was attributed to investors' hopes of a recovery in Saudi Arabian shipments despite ongoing tensions across the Middle East.

The Houthi rebels, backed by Iran, had attacked 'sensitive' sites in Riyadh and an Aramco facility in Yanbu over the weekend. However, Saudi Arabia's exports have reportedly recovered to 4 million barrels per day (bpd) so far this month, up from 2.4 million bpd in August.

JPMorgan analysts noted that Middle East oil flows remain surprisingly strong despite disruptions to Saudi Arabia's East-West pipeline. Total oil flows averaged 17.1 million bpd over the past 10 days, which was 6.1 million bpd below the 2025 average.

Goldman Sachs has outlined a scenario in which oil prices could reach as high as $120 per barrel if attacks on vessels in the Middle East intensify. Analysts at JPMorgan have expressed uncertainty over how to model the endgame, highlighting the risks surrounding supply disruptions and escalating tensions.