Oil Prices Slide on Anticipated Trump-Iran Diplomacy at UN
Oil prices declined for four consecutive sessions to $101.71 a barrel, their longest losing streak in three months, as traders anticipated talks between US President Donald Trump and Iran's president during the UN General Assembly.
The market believes the risk premium added after the Iran-Israel conflict escalated in late August has peaked, but this judgment remains provisional.
Saudi Arabia has restored throughput through the Strait of Hormuz to 2.8 million barrels per day, a sharp recovery from the 700,000 barrels per day recorded during August's worst disruptions.
The market is pricing an opening in diplomatic talks rather than an agreement, and oil prices could quickly regain the premium if the anticipated diplomacy fails to materialize or produces no progress.