Oil Prices Plummet on Hopes for US-Iran Diplomacy and Saudi Export Recovery
Oil prices plummeted to an 11-day low on Monday as investors hoped for diplomatic progress between the US and Iran, and eyed a recovery in Saudi oil exports.
The Brent crude futures contract for November fell to $101.18 per barrel, down 2.6% from Friday's close, while the WTI October contract dropped to $97.61 per barrel, down 2.7%.
The decline came as Iran and the US exchanged new threats on Sunday, but President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian at the UN General Assembly this week.
Saudi Arabia's oil exports have been increasing, with satellite data showing an average of 2.9 million barrels per day moving through the Strait of Hormuz over the past six days, up from just 700,000 bpd in August, according to JPMorgan analysts.