Oil Prices Plunge on Hopes of Diplomatic Progress at UN Meeting
Oil prices plummeted to their lowest in over a week on Monday as investors pinned hopes on diplomatic progress at this week's UN meeting to de-escalate the US-Iran conflict.
The Brent crude futures and US West Texas Intermediate (WTI) crude touched their lowest since September 10, with the November Brent contract falling $1.78 or 1.71% to $102.09 a barrel, while the October WTI contract dropped $1.97 or 1.96% to $98.33 a barrel.
Analysts attributed the decline to a decrease in risk premium on oil prices, with Tim Waterer, chief market analyst at KCM Trade, saying 'whether that hope proves to be warranted or not is another question.' The WTI broke a key psychological support at $100 a barrel, while some investors may have rolled over their positions from the October contract to November.
The Iran-US tensions remain elevated as Yemen's Houthis attacked 'sensitive' sites in Riyadh and an Aramco facility in Yanbu on Saturday. China has asked Iran to help rein in the Houthis after Saudi Arabia appealed to Beijing following the attacks.