Oil Prices Slide on Diplomatic Hopes and Saudi Shipments

Oil prices fell to their lowest in 11 days on Monday as investors became optimistic about diplomatic progress between the US and Iran ahead of this week's UN meeting. The Brent crude futures contract for November touched its lowest since September 10, trading at $101.18 per barrel, down $2.69 or 2.6% from the previous day.

The decline in oil prices was also attributed to a partial recovery in shipments from Saudi Arabia. According to JPMorgan analysts, Middle East oil flows remain surprisingly strong despite disruptions to Saudi Arabia's East-West pipeline. Satellite data indicated that Saudi oil moving through the Strait of Hormuz averaged 2.9 million barrels per day over the past six days, up from just 700,000 bpd in August.

The Iran-US tensions have been a major factor contributing to the fluctuations in oil prices. While President Donald Trump expressed his willingness to meet with Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly this week, Iran's security chief Mohsen Rezaei said that Tehran had conveyed its conditions to mediators for re-engaging in negotiations.