WTI slumps to near $89.00 as markets weigh Trump’s UN speech

West Texas Intermediate (WTI) dropped to near $89.00 as markets considered President Donald Trump's UN speech. The US leader revealed the US held lengthy talks with Iran's delegation at the United Nations General Assembly in New York City. Trump claimed the meeting was positive, stating, "It was a very good meeting." Earlier in the week, Trump mentioned a major decision about whether to negotiate with Iran or continue applying pressure on Tehran.

He cautioned that he might annihilate Iran if no agreement was reached, but also hinted at potential early agreement due to diplomatic efforts at the UN. On Saturday, the Houthis attacked Saudi Arabia's capital Riyadh and the Red Sea port city Yanbu, which serves as a major oil export terminal. Saudi authorities reported intercepting a ballistic missile aimed at Riyadh and thwarting an attack on Yanbu.

Unexpected weekly build-up in US crude oil inventories was noted, with the American Petroleum Institute reporting an increase of 1.786 million barrels for the week ending September 18, compared to the rise of 7.14 million barrels in the previous week. Analysts from OCBC believe that crude prices might gain further support, noting potential renewed interest in oil after the recent attacks on Saudi Arabia.

WTI oil, a high-quality type of crude oil sold on international markets, is the benchmark for the oil market. Supply and demand, political instability, wars, sanctions, OPEC decisions, the US Dollar value, and weekly oil inventory reports influence WTI prices.