BP and Shell fall as oil slides on Saudi supply recovery and Iran talks

BP PLC ( LSE:BP. ) and Shell PLC ( LSE:SHEL, NYSE:SHEL) fell in early London trading as crude oil prices dropped more than 2% amid recovering Saudi Arabian exports and hopes of renewed US-Iran diplomacy.

BP shares declined 1.6% to 549.6p, while Shell slipped 0.7% to 3,513.5p.

Brent crude fell US$2.22, or 2.1%, to US$101.65 a barrel, while West Texas Intermediate dropped US$2.11, or 2.2%, to US$93.97.

Sentiment shifted after Donald Trump said he would be “probably open” to meeting Iranian President Masoud Pezeshkian during the United Nations General Assembly in New York this week.

No meeting has been confirmed, but the possibility of direct talks reduced some of the geopolitical premium attached to crude prices.

Oil was also pressured by expectations that Saudi Arabia could restore around half the capacity of its damaged East-West pipeline within days.

Preliminary shipping data indicated that Saudi crude exports recovered to more than 4 million barrels a day in September, compared with around 2.4 million barrels a day during August.

Weekend missile and drone attacks claimed by Yemen’s Houthi movement did not appear to remove additional barrels from the market.

Supply risks remain elevated as Saudi Arabia routes more crude through the Strait of Hormuz while its cross-country pipeline remains impaired.