Oil sank to 12-day lows on UN diplomacy hopes and recovering Saudi flows
The retreat marked the weakest settlement for both benchmarks since 9 September, driving Brent to test the $100-per-barrel threshold.
Global crude futures dropped sharply on Monday to 12-day lows as prospects for diplomatic progress at the UN General Assembly and a recovery in Saudi export shipments eased supply disruption fears.
International benchmark Brent crude fell $3.53, or 3.4%, to settle at $100.34 a barrel. Expiring US West Texas Intermediate (WTI) October crude plunged $4.52, or 4.51%, to close at $95.78 a barrel, while the more active November contract settled at $92.47 a barrel.
The retreat marked the weakest settlement for both benchmarks since 9 September, driving Brent to test the $100-per-barrel threshold.
Selling pressure accelerated on signs of potential diplomatic engagement between Washington and Tehran in New York. Sentiment softened after US President Donald Trump signaled openness to meeting Iranian President Masoud Pezeshkian, alongside reports that Tehran submitted framework conditions to mediators to resume stalled negotiations.
Downside momentum was reinforced by a tangible rebound in Saudi waterborne exports. Saudi Aramco loaded roughly 14 million barrels onto seven supertankers over the weekend, rerouting crude through the Persian Gulf to bypass disrupted Red Sea pipeline infrastructure at Yanbu. Saudi transits through the Strait of Hormuz consequently averaged 2.9 million barrels per day over the past six days, up sharply from 700,000 bpd in August.
However, a deeper decline was checked by persistent physical risks, including fresh Houthi claims of strikes on Riyadh and Yanbu, alongside an unexpected output curtailment at Libya’s major Sharara oilfield.
Written by: Aiman Haikal