Oil slips fourth time in a row as Iran diplomacy and Saudi oil recovery ease gulf risk premium

Crude oil prices slipped to a 11 day low on Monday as investors relied on diplomatic progress on Iran war at the UN meet this week and eyed partial stock recovery in shipments from Saudi Arabia according to reports.

The global crude oil benchmarks WTI and Brent futures plunged to their lowest levels since Saudi Arabia’s major pipeline was hit by barrage strikes by Yemen’ Houthi’s.

Brent crude falling more than 2% to $101.70 a barrel after settling 0.91% lower on Friday. WTI dropped below $100 for the first time in week, following a 1.58% drop in the previous session

According to data by ship tracking company, commodity vessels crossing the critical waterways declined further. As per data just a dozen of them made a passage this weekend. This compared to 35 tankers and other commodity carriers passing the choke point a week earlier.

Saudi Arabia sends oil by pipeline to its Ras Tanura port on the Persian Gulf, from where the small vessels ship the oil to the Gulf of Oman and get transferred into bigger tankers. However, the Persian Gulf flow increases. Increased flows of Saudi oil from the Red Sea port of Yanbu have been compromised in view of the latest attack by the Yemen’s Houthi group. Besides, this weekend saw a series of attacks on Riyadh and another attack on the port of Yanbu, which became Saudi’s primary outlet for crude oil after the Hormuz Strait.