LONDON: Oil prices fell about 2% on Monday to their lowest since September 10 as investors weighed prospects for U.S.-Iran diplomacy and a rebound in Saudi Arabian crude exports.
Brent crude futures for November traded at $101.75 a barrel at 0859 GMT on September 21, down $2.12, or 2%, Reuters reported. October West Texas Intermediate fell $1.96, or 2%, to $98.34, while the November WTI contract stood at $94.16.
Earlier in the session, Brent had fallen to $101.71 and WTI to $98.15, both their lowest levels in more than a week.
Tim Waterer, chief market analyst at KCM Trade, attributed part of the decline to investors removing some geopolitical risk premium, hoping diplomatic efforts could ease the U.S.-Iran conflict during United Nations General Assembly week in New York.
U.S. President Donald Trump has said he would be open to meeting Iranian President Masoud Pezeshkian during the gathering, although no bilateral meeting has been confirmed. Iran has separately conveyed conditions to mediators for resuming negotiations, according to Reuters.
Read: Oil prices rise as Brent hits $97.34 on Iran tensions
Supply concerns also eased as Saudi crude exports recovered to more than 4 million barrels per day so far in September, up from 2.4 million bpd in August, according to provisional Kpler data. August’s level was the lowest since at least 2013.
Saudi Aramco increased shipments through the Strait of Hormuz after Houthi attacks disrupted the East-West pipeline and reduced some exports through the Red Sea port of Yanbu. JPMorgan said Saudi crude moving through Hormuz averaged 2.9 million bpd over the previous six days, compared with about 700,000 bpd in August.
Regional risks remain elevated after Yemen’s Houthis said they targeted sites in Riyadh and an Aramco facility in Yanbu on September 19. Those attacks have kept traders focused on potential disruptions to Saudi export infrastructure even as current shipment volumes recover.
