Oil prices edged lower in Asian trading on Monday, extending losses from last week, as investors focused on diplomatic efforts to end the U.S.-Iran war even as fresh attacks by Yemen’s Iran-backed Houthis kept tensions elevated.

As of 20:33 ET (00:33 GMT), Brent Oil Futures expiring in November fell 0.9% to $102.93 per barrel, while West Texas Intermediate (WTI) crude futures slipped 1% to $99.27 per barrel.

Brent oil had already posted weekly losses on Friday as signs of potential diplomatic progress and efforts to restore disrupted Saudi supplies eased some of the market’s supply fears.

U.S. President Donald Trump said in a Fox News interview he would probably be open to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assembly in New York this week.

Any progress towards negotiations could reduce the geopolitical premium in crude.

The latest Houthi attacks, however, underscored the risks facing energy infrastructure and shipping routes in the region.

The Houthis launched missile and drone strikes towards Riyadh on Saturday, prompting Saudi Arabia to issue air-raid alerts for the capital. The attacks came as the group has intensified its campaign against Saudi Arabia amid the wider U.S.-Iran conflict.

The renewed tensions have raised concerns about further disruptions to Saudi oil exports. Saudi Arabia’s East-West pipeline, which transports crude from the kingdom’s eastern fields to the Red Sea, remains affected by attacks, although Riyadh has been seeking alternative ways to move barrels to international markets.

Earlier reports that Saudi Arabia was offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman’s Sohar port helped ease fears of an immediate shortage.

The conflicting signals leave oil markets highly sensitive to developments on both the diplomatic and military fronts.

Source: Investing.com

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