Oil Prices Slide Amid Hopes for Diplomatic Progress in Iran War
Oil prices fell to their lowest in over a week on Monday as investors pinned hopes on diplomatic progress in the Iran war due to this week's UN meeting. The Brent crude futures and US West Texas Intermediate (WTI) crude touched their lowest since September 10, with the Brent contract for November at $102.09 a barrel, down $1.78 or 1.71% from Friday's settlement.
Tim Waterer, chief market analyst at KCM Trade, said that 'a degree of risk premium is being removed from oil prices on hopes that a diplomatic path to de-escalate the US-Iran war may arrive this week.' However, he noted that whether this hope proves warranted or not remains another question.
The WTI broke a key psychological support at $100 a barrel while some investors may have rolled over their positions in the October contract ahead of its expiry on Tuesday to November. Iran and the US exchanged new threats on Sunday, although President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian during the UN General Assembly this week.
In related news, gold prices slipped on Monday as market participants assessed developments in the Middle East and their implications for inflation and interest rates. Spot gold fell 0.3% to $4,362.60 per ounce by 0417 GMT after hitting a one-week high on Friday.