Oil Prices Plunge Amid Conflicting Supply Reports

Oil prices dropped on Monday amid conflicting reports of increased supply from the Middle East, contributing to an upbeat start to the week in Asia.

The Brent price had initially risen following a Houthi attack on Saudi Arabia's capital over the weekend, but soon fell by 2% as hopes grew that the kingdom would quickly restore some oil flows through its East-West pipeline.

A report from US Central Command head Admiral Brad Cooper suggested that crude oil and liquefied natural gas volumes in the past two weeks were higher than at any point in the past six months, with ships being escorted by the US military but running transponders off to avoid detection.

However, shipping data showed only 12 commodity vessels transited the Strait of Hormuz on Saturday and Sunday, down from 35 during the previous weekend.