Oil Prices Slide Amid Hopes for Diplomatic Breakthrough in US-Iran War

Oil prices dipped to their lowest in over a week on Monday as investors cautiously assessed Saudi Arabia's export recovery despite ongoing Houthi attacks.

Brent crude futures and US West Texas Intermediate (WTI) crude touched their lowest since September 10, with Brent at $101.71 a barrel by 0213 GMT, down $2.16 or 2.08% from the previous day's settlement.

The WTI lost $2.15 or 2.14% to $98.15 a barrel after a 1.58% drop in the previous session.

Tim Waterer, chief market analyst at KCM Trade, attributed the decline to the removal of a 'risk premium' from oil prices on hopes that diplomatic efforts may de-escalate the US-Iran war this week.

However, Saudi Arabia's ability to recover exports to over 4 million barrels per day (bpd) in September, despite attacks by Yemen's Houthis, was seen as a positive sign for the oil market.