Oil Prices Plunge on US-Iran Diplomacy Hopes and Saudi Export Recovery

Oil prices plummeted to an 11-day low on Monday as investors bet on diplomatic progress between the US and Iran ahead of this week's UN meeting, and a partial recovery in Saudi oil exports. The Brent crude futures contract for November fell $2.69, or 2.6%, to $101.18 a barrel, while the WTI October contract dropped $2.69, or 2.7%, to $97.61.

The recent attacks by Yemen's Iran-backed Houthis on Saudi Arabia's oil facilities and infrastructure have contributed to the decline in prices. However, satellite data indicates that Saudi oil exports through the Strait of Hormuz have increased significantly, averaging 2.9 million barrels per day over the past six days.

Libya's National Oil Corporation Chairman Massoud Suleman told Reuters that production at the Sharara oilfield has been partially reduced, but did not provide a reason for the decrease. The attacks by the Houthis have prompted Saudi Aramco to increase exports through the Strait of Hormuz this month and next.