Brent Falls $2.12 as Iran-US UNGA Talks Revive
Oil futures hit a one-week low on diplomatic hopes, despite recent drone strikes on Moscow and Aramco supply cuts.
Key points
- Brent crude dropped $2.12 to $101.75 per barrel as markets awaited UNGA talks.
- Aramco cut European crude supplies and rerouted shipments via Oman’s Sohar port.
- Ukraine’s drone strikes damaged a Moscow refinery, causing regional fuel shortages.
Brent crude fell $2.12 to $101.75 per barrel on Monday. This marked the lowest level in more than a week.
Traders bet on diplomatic progress during the United Nations General Assembly. US President Donald Trump indicated willingness to meet Iranian President Masoud Pezeshkian.
Diplomatic hopes outweigh geopolitical risks
WTI October contracts dropped $1.96 to $98.34 per barrel. This movement reflected a broader market shift away from fear.
The price drop occurred despite weekend threats from both nations. Yemen’s Houthis also reported strikes on an Aramco facility in Yanbu.
Aramco reroutes oil shipments to Oman
Aramco told European customers it would cut crude supplies next month. Polish refiners like Orlen began buying North Sea alternatives.
The company increased Gulf shipments via ship-to-ship transfers off Oman. This strategy offsets lost volumes from the Red Sea corridor.
Ukraine strikes damage Russian refining capacity
Ukraine launched the largest drone attack on Moscow’s region to date. Three people died and part of a capital refinery was damaged.
Moscow authorities reported downing over 1,600 drones since Saturday. Continued strikes have caused fuel shortages and price rises in several regions.
QatarEnergy noted that the Strait of Hormuz crisis may delay expansion. Key equipment for LNG projects cannot currently reach the country.
