Brent crude fell below $102 per barrel on Monday, extending its decline to a fourth consecutive session as hopes of diplomatic progress between the United States and Iran eased some of the pressure on oil markets.
Brent crude futures fell 2.1% to $101.71 a barrel by 0213 GMT, their lowest level since September 10. US West Texas Intermediate (WTI) also fell 2.14% to $98.15 a barrel.
The decline comes as investors assess whether diplomatic efforts this week could help reduce tensions around the Middle East and support a more stable flow of oil from the region.
US President Donald Trump has indicated that he would be open to meeting Iranian President Masoud Pezeshkian, who is expected in New York for the United Nations General Assembly.
Iran has also conveyed conditions to mediators for potentially returning to negotiations, according to Reuters, although tensions between the two sides remain high.
Saudi oil flows recover
The other factor supporting the decline in prices is a partial recovery in Saudi oil shipments.
Attacks on Saudi Arabia’s East-West pipeline have affected the country’s ability to move crude through the Red Sea route, prompting Saudi Arabia to increase exports through the Strait of Hormuz.
Saudi crude exports have recovered to more than 4 million barrels per day in September, compared with about 2.4 million barrels per day in August, according to provisional data from Kpler cited by Reuters.
JPMorgan data also showed Saudi oil shipments through the Strait of Hormuz averaged about 2.9 million barrels per day over the six days to September 18, up from around 700,000 barrels per day in August.
That recovery has helped reassure the market that oil is still moving from the region despite the disruption.
Hormuz remains a key risk
The Strait of Hormuz, however, remains under significant pressure.
Reuters reported on Monday that only about a dozen commodity vessels passed through the strait over the weekend, compared with 35 the previous weekend. Before the conflict began, the waterway typically handled around 125 large vessels a day.
The lower visible shipping activity highlights the continued uncertainty surrounding one of the world’s most important oil and gas routes.
For now, oil prices are responding to two developments: the recovery in Saudi shipments and renewed hopes that diplomacy could reduce the conflict-related risks affecting regional energy supplies.
Brent’s move below $102 therefore marks another step down from the levels seen earlier in September, when concerns over disruptions pushed the benchmark above $107 a barrel.
