Oil Prices Plummet on Diplomatic Hopes Amid Iran War Tensions
Oil prices dropped to their lowest in over a week on Monday as investors grew hopeful about diplomatic progress in the Iran war. The optimism stems from this week's UN meeting and improved Saudi Arabia ship recoveries despite ongoing Houthi attacks.
The Brent crude futures contract for November fell by $1.78, or 1.71%, to $102.09 a barrel at 0655 GMT, down from its settlement on Friday of 0.91%. The US West Texas Intermediate crude contract expiring in October dropped by $1.97, or 1.96%, to $98.33 a barrel following a 1.58% drop the previous session.
According to Tim Waterer, chief market analyst at KCM Trade, 'It seems that a degree of risk premium is being removed from oil prices on hopes that a diplomatic path to de-escalate the US-Iran war may arrive this week.'