Oil Prices Slide Amid Hopes for Diplomatic Progress Between US and Iran
Oil prices dropped to their lowest in 11 days on Monday as investors hoped for diplomatic progress between the US and Iran due to this week's UN meeting. The Brent crude futures contract for November fell $2.69, or 2.6%, to $101.18 a barrel, while the WTI October contract that is expiring on Tuesday dropped $2.69, or 2.7%, to $97.61 a barrel.
The downward trend in oil prices comes despite ongoing fighting in the Middle East, where Yemen's Iran-backed Houthis attacked Riyadh and a Saudi Aramco facility in Yanbu. However, China has asked Iran to help rein in the Houthis after an appeal to Beijing by Saudi Arabia following the attacks.
Saudi Arabia has increased exports through the Strait of Hormuz this month and next after halting some shipments via Yanbu due to attacks on Aramco's East-West pipeline. This pivot has led JPMorgan analysts to note that Middle East oil flows remain surprisingly strong despite disruptions.