Oil Prices Plummet on Hopes of Iran-US Diplomatic De-escalation
Oil prices plummeted to their lowest in over a week on Monday, driven by hopes of diplomatic de-escalation in the Iran-US war. Brent crude futures and US West Texas Intermediate crude touched their lowest since September 10, with Brent at $101.71 a barrel, down $2.16 or 2.08% from Friday's close.
US West Texas Intermediate crude lost $2.15 to $98.15 a barrel, following a 1.58% drop in 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.'
The WTI broke a key psychological support at $100 a barrel, while some investors may have rolled over their positions in the October contract ahead of expiry to November. Tensions in the Middle East remained elevated as Yemen's Iran-backed Houthis attacked 'sensitive' sites in Riyadh and an Aramco facility in Yanbu.