CRUDE WRAP: WTI (X6) SETTLES USD 3.71 LOWER AT USD 92.37/BBL; BRENT (Z6) SETTLES USD 3.05 LOWER AT USD 96.24/BBL

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Factions pledged to cease any military activity that violates the Iraqi state; The committee tasked with inventorying weapons in Iraq has reached understandings stipulating that the inventory will end in June 2027, reports Al Arabiya citing sources

Qatar Foreign Ministry Spokesperson says Doha is trying to mediate and open the way for talks between Iran and the United States, Tasnim reports

CRUDE WRAP: WTI (X6) SETTLES USD 3.71 LOWER AT USD 92.37/BBL; BRENT (Z6) SETTLES USD 3.05 LOWER AT USD 96.24/BBL

Informed Ukraine source does not expect any breakthroughs yet in regards to the meeting between US President Trump and Ukraine President Zelensky, but attention is paid to energy de-escalation, reports Ukraine media RBC

Fed's Musaelm (2028 voter, Hawk) says without further policy restraint, it is more likely inflation will remain substantially above 2% target 18 months from now

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Oil prices weighed by diplomatic optimism around the US-Iran conflict and continued profit-taking of the strong gains were seen in early September. Initial upside sparked at the open from fresh Houthi attacks on Saudi's Aramco facilities and US President Donald Trump reportedly saying on Sunday that he is thinking of "blowing up" all of Iran as he left the Camp David retreat a day early to return to the White House. That said, the move faded perhaps as the NYT reported that Trump appeared on Sunday to hold off on attacking the Houthis, at least for the time being, according to an admin official. Further adding to the downside was potentially Trump signalling openness to meeting with the Iranian President at the UN General Assembly in New York. Out of Iran,  the country reiterated that Hormuz will remain closed until its seven conditions are met and noted the war is not over; WTI and Brent traded between USD 91.19-97.22/bbl and USD 95.08-100.22/bbl respectively.

Energy updates: 

  • Saudi Aramco loaded 14mln barrels of crude on seven VLCCs from Gulf terminals on Sunday, Reuters reported..
  • Moscow oil refinery has reportedly halted operations after a Ukrainian drone attack on September 20th, Reuters reported.
  • Russia is reportedly planning to extend its diesel ban beyond the end of September, via Bloomberg.
  • Libya’s Sharara (300k BPD) oil output drops by more than half after a pipeline shutdown, via Bloomberg.

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