Saudi Oil Exports Rebound as Iran Conflict Tensions Ease
Oil prices dipped to their lowest level in 12 days on Monday as investors eyed a partial recovery in shipments from Saudi Arabia and hoped for diplomatic progress on the Iran conflict.
The Brent crude futures contract fell below $100 a barrel, its lowest since September 9, while US West Texas Intermediate crude dropped below that threshold for the first time this month. The WTI October contract expiring on Tuesday plummeted by $4.64 to $95.66 a barrel, and the November contract stood at $92.34.
The drop in oil prices came as Saudi Arabia increased exports through the Strait of Hormuz after halting some shipments via Yanbu due to attacks by Yemen's Iran-backed Houthis on Aramco's East-West pipeline. The firm has also boosted exports through the Strait of Hormuz this month and next, according to JPMorgan analysts.
Hopes for a breakthrough in peace talks during this week's UN General Assembly further weighed on prices, said Tamas Varga, analyst at PVM Oil Associates. Meanwhile, Libya's National Oil Corp Chairman Massoud Suleman told Reuters that the country's Sharara oilfield has seen a partial reduction in production.