Oil Prices Slide on Diplomatic Hopes Ahead of UN Meeting
Oil prices have dropped to their lowest in over a week on Monday, as investors become hopeful about diplomatic progress regarding the US-Israeli war on Iran ahead of 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. The WTI October contract that is expiring on Tuesday fell $1.97, or 1.96%, to $98.33 a barrel.
Tim Waterer, chief market analyst at KCM Trade, said '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, whether this hope proves warranted or not remains to be seen.
The tensions in the Middle East remain elevated as Yemen's Houthi rebels said they attacked 'sensitive' sites in the Saudi capital of Riyadh on Saturday with missiles and drones. China has asked Iran to help rein in the Houthis after an appeal to Beijing by Saudi Arabia following the attacks, according to three Iranian sources familiar with the matter.