Oil prices slide on hopes of diplomacy in Iran war

Business Recorder reported that oil prices fell to their lowest level in more than a week on Monday, as investors pinned hopes on diplomatic progress in the Iran war ahead of this week's UN meeting. Both Brent crude futures and West Texas Intermediate touched their lowest since September 10 earlier in the day. The November Brent contract traded at $102.09 a barrel, down $1.78 or 1.71 per cent, after settling 0.91 per cent lower on Friday.

Tim Waterer of KCM Trade said some of the risk premium was coming out of prices, though whether the hopes prove justified remained uncertain. WTI slipped below a key psychological support of $100 a barrel, while a Singapore-based broker said some investors may have rolled October positions into November a day before expiry. Iran and the US traded fresh threats on Sunday, and Yemen's Houthis said they hit 'sensitive' sites in Riyadh and an Aramco facility in Yanbu.

JPMorgan analysts noted in a September 18 note that Middle East oil flows remained strong, averaging 17.1 million bpd over the past 10 days. Satellite data showed Saudi oil moving through the Strait of Hormuz averaged 2.9 million bpd over six days, up from 700,000 bpd in August. State energy firm Saudi Aramco has increased Hormuz exports this month and next after halting some shipments via Yanbu.