Oil Prices Tumble on Diplomatic Hopes, GBP/USD Sees Further Declines

Oil prices have declined to their lowest level in over a week as investors grow optimistic about diplomatic progress between the U.S. and Iran at this week's UN meeting, alongside a partial recovery in shipments from Saudi Arabia.

The price of WTI is below $95 a barrel, and Brent is below $100 a barrel, with some of the risk premium being removed from oil prices on hopes of diplomatic de-escalation between the U.S. and Iran.

President Trump has said he would be open to meeting the Iranian president, who is expected to be in New York this week for the UN General Assembly. Iran has conveyed conditions for re-engaging in negotiations.

Despite ongoing Houthi attacks on Saudi energy infrastructure, oil price declines have been limited. Analysts at J.P. Morgan have said that satellite data indicated Saudi oil moving through the Strait of Hormuz averaged 2.9 million barrels a day over the past six days, up from just 700,000 in August.

In other news, the GBP/USD fell almost 1% last week and is holding on to those losses at the start of the new week. The U.S. dollar extended its gains after the Federal Reserve's rate hike and hawkish stance, while the Bank of England retained a cautious stance, leaving rates unchanged.