Oil Settles Near $100 as Hormuz Flows Stunt Rally

AI Summary

Oil prices settled near $100 a barrel amid increased Saudi exports through the Strait of Hormuz and hopes of diplomatic progress regarding the Iran conflict. Saudi Arabia redirected exports to the Persian Gulf after drone attacks shut down its East-West pipeline, while Brent and WTI prices declined due to supply stabilization attempts.

Oil fell Monday, settling near $100 a barrel, on signs Saudi Arabia is boosting exports via the key Strait of Hormuz and fresh hopes for diplomatic progress in the Iran war. Brent, the global benchmark, declined for a fourth session, settling 3.4% lower. The October West Texas Intermediate contract, which expires on Tuesday, fell about 4.5%. Satellite data showed that Saudi Arabia’s observed oil loadings from inside the Persian Gulf jumped over the weekend, with the highest number of ships seen at the nation’s main Persian Gulf port since June. The images indicate that the kingdom is successfully redirecting its exports back toward the Gulf following the shutdown of its vital East-West pipeline due to drone attacks.  For more, we speak with Humayun Tai, Global Leader of Energy & Materials at McKinsey. (Source: Bloomberg)