- Brent crude traded at $102.05 a barrel and WTI at $98.50, down to the lowest level in a week, as a slice of the geopolitical risk premium came out of prices on hopes of a US-Iran diplomatic de-escalation at this week's UN meeting.
- Houthi missile and drone strikes hit Saudi Arabia's capital Riyadh on Saturday, including a fuel storage area at King Khalid International Airport, escalating the Middle East conflict even as oil prices fell.
- Washington and Tehran traded fresh threats over the weekend: the US president threatened Iran with economic collapse and regime failure absent a deal, and Iran promised a harsh response to any US attack.
- Saudi Arabia redirected oil flows and lifted exports through the Strait of Hormuz to 2.9 million barrels a day over the past week, up from 700,000 barrels a day in August, according to JPMorgan.
Quotes
“It seems that a degree of risk premium is being removed from oil prices on hopes that a diplomatic path to de-escalate the US-Iran war may arrive this week”