Saudi Shipments Bounce Back, Oil Prices Slip Below $100
Oil prices dipped below $100 a barrel after data showed Saudi Arabia is increasing its crude shipments by sea, easing concerns about an immediate supply squeeze. Brent and WTI both fell under $100 for the first time since September 9 as traders reassessed the 'war-risk' premium built into near-term prices.
JPMorgan's satellite data revealed that Saudi crude passing through the Strait of Hormuz averaged 2.9 million barrels a day over the past six days, up from about 700,000 in August. This increase has continued even as tensions between Iran and the US have remained high, with the two countries trading threats.
US President Donald Trump also expressed openness to meeting Iran's president at this week's UN General Assembly, which markets watch for signs of cooling tensions. The combination of increased Saudi shipments and diplomatic efforts has led traders to reevaluate their 'disruption risk' premiums, causing oil prices to fall.