Oil Falls but on Track for 8% Weekly Gain on Supply Concerns; US Diesel Hits Record Highhttps://english.aawsat.com/business/5317145-oil-falls-track-8-weekly-gain-supply-concerns-us-diesel-hits-record-high
Oil Falls but on Track for 8% Weekly Gain on Supply Concerns; US Diesel Hits Record High
WHITING, INDIANA - SEPTEMBER 08: An aerial view shows the sprawling BP refinery on September 08, 2026 in Whiting, Indiana. (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
Oil Falls but on Track for 8% Weekly Gain on Supply Concerns; US Diesel Hits Record High
WHITING, INDIANA - SEPTEMBER 08: An aerial view shows the sprawling BP refinery on September 08, 2026 in Whiting, Indiana. (Photo by SCOTT OLSON / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
Oil prices fell on Friday but remained on course for a weekly gain of more than 8% while US diesel prices hit a record high as attacks along Middle East shipping routes stoked concerns about prolonged supply disruptions.
Brent crude futures were down $3.45, or 3.21%, to $104.18 a barrel at 1132 GMT.
US West Texas Intermediate crude fell $2.96, or 2.89%, to $99.52 a barrel. Both benchmarks hit their highest levels since mid-May earlier in the session.
The benchmarks reversed early gains after the Financial Times reported that foreign ministers in the Middle East are trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz.
Brent and WTI rose more than 6% on Thursday after an escalation in shipping attacks in the region.
"Some headlines of possible new talks in the Middle East are weighing moderately on oil prices today," said UBS energy analyst Giovanni Staunovo. "I keep seeing near-term risks to the upside for oil prices, but we should expect ongoing high price volatility too."
In a further potentially significant development for Riyadh, satellite imagery showed smoke on Thursday in the vicinity of Saudi Arabia's East-West Pipeline, which has become a vital means for the kingdom to divert its crude exports away from Hormuz.
Saudi Arabia's crude supply fell by 2.3 million barrels per day on the month to 6 million bpd in August, the lowest level in more than three decades, the International Energy Agency said on Friday, citing attacks on Saudi energy facilities.
Adding to concerns over regional oil flows, Yemen's Iran-aligned Houthis on Friday reached the island of Perim in the Bab el-Mandeb Strait, four Yemeni government sources told Reuters, potentially tightening their grip on one of the world's vital shipping routes.
Iran said it had attacked 10 ships near the Strait of Hormuz on Wednesday, after the US hit five Iranian oil tankers. Iran's Islamic Revolutionary Guard Corps said it would escalate its response to any further attacks.
Vessel transits at the Strait of Hormuz fell to seven on Thursday from 11 the previous day, preliminary ship-tracking data showed on Friday.
The strait handled about 125 commodity vessels and one-fifth of global daily oil and liquefied natural gas supplies before the Iran war began in late February.
Meanwhile, two European Central Bank policymakers opened the door on Friday to further interest rate increases if a war-fuelled rise in energy prices continues and pushes up other prices in the euro zone.
SUPPLY DISRUPTIONS LIFT FUEL PRICES
Oil supply disruptions due to the Iran war, along with Ukrainian attacks on Russia's refineries, pushed the US national average diesel price past $6 a gallon for the first time on Thursday, according to price tracker GasBuddy.
"Refined products, particularly diesel, are feeling a one-two punch right now," said Tim Waterer, chief market analyst at KCM Trade.
"As long as both the Gulf shipping constraints and Russian refining outages remain in play, diesel and other refined products are likely to show a higher upside tendency than the broader crude market," he added.
Commerzbank raised its year-end Brent crude forecast to $85 a barrel from $75, while increasing its diesel forecast to $1,200 a ton from $950 and its jet fuel forecast to $1,230 a ton from $980.
Saudi Energy Ministry Signs MoU with IEF; Oil Sustainability Program Signs Agreement with US Foundationhttps://english.aawsat.com/business/5328900-saudi-energy-ministry-signs-mou-ief-oil-sustainability-program-signs-agreement-us
Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz at the signing ceremony between the ministry and International Energy Forum. (SPA)
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Saudi Energy Ministry Signs MoU with IEF; Oil Sustainability Program Signs Agreement with US Foundation
Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz at the signing ceremony between the ministry and International Energy Forum. (SPA)
Saudi Arabia’s Ministry of Energy signed on Monday a memorandum of understanding (MoU) with the International Energy Forum (IEF) to strengthen cooperation across the energy sector.
The signing was held on the sidelines of the 25th WPC Energy Congress, hosted by the Kingdom through October 15 as part of Energy Week in Riyadh, and in the presence of Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz.
The Oil Sustainability Program (OSP) also signed an MoU with Sierra Leone’s Ministry of Energy on sustainable energy access and an agreement with the US Bettering Human Lives Foundation to provide clean cooking solutions using liquefied petroleum gas (LPG).
Prince Abdulaziz witnessed the signing of the MoU between the Ministry of Energy and the IEF. The ministry was represented by Director General of the General Department for Clean Hydrocarbon Technologies Support Faisal Al-Mousa, while the IEF was represented by Secretary General Jassim Al-Shirawi.
The MoU establishes a framework for cooperation across energy-related fields, including the advancement of sustainable practices in clean energy and related technologies, cooperation on climate change mitigation, and the application of the Circular Carbon Economy (CCE) approach and the Regional CCE Cooperation Initiative. It also covers cooperation on climate-related outreach at the regional and international levels.
Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz at the signing ceremony between the Oil Sustainability Program and the US Bettering Human Lives Foundation. (SPA)
The cooperation will further strengthen the IEF’s engagement with the Regional CCE Cooperation Initiative, sustain dialogue and build on relevant research, including the IEF report “Empowering Sustainable Futures: MENA NDCs Climate Action”, which reviews progress on nationally determined contributions and provides a comprehensive regional perspective on climate action in the Middle East and North Africa.
Prince Abdulaziz witnessed the signing of an MoU on sustainable energy access between the Oil Sustainability Program and the Ministry of Energy of the Republic of Sierra Leone. The MoU was signed by OSP Chief Executive Officer Mohammed Al-Tayyar and Sierra Leone Deputy Minister of Energy Abdul Rahim Jalloh.
The MoU establishes a framework for cooperation on sustainable initiatives and practices, including exploring opportunities for renewable energy projects, promoting the development of hydrocarbon-based solutions for transport infrastructure and fuels, and expanding access to clean cooking.
The cooperation also includes developing and implementing integrated plans to expand access to clean cooking energy, including LPG and renewable energy solutions, and raising awareness of the role of clean cooking in advancing the Sustainable Development Goals.
Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz at the signing ceremony between the Oil Sustainability Program (OSP) and Sierra Leone’s Ministry of Energy. (SPA)
It aims to strengthen international cooperation and facilitate increased investment in clean cooking fuels, technologies and related value chains. The two sides will also cooperate to facilitate household access to clean cooking solutions in Sierra Leone, including electricity support, energy-efficiency certificates, LPG and other cooking solutions, through a collaborative partnership.
Prince Abdulaziz witnessed the signing of an agreement between the Oil Sustainability Program and the US Bettering Human Lives Foundation to provide clean cooking solutions using LPG. The agreement was signed by OSP Chief Executive Officer Mohammed Al-Tayyar and the foundation’s Executive Director Anne Hyre.
The agreement aims to strengthen cooperation between the two sides and explore opportunities to develop a strategic partnership by aligning priorities and examining potential frameworks for implementing the initiative in a manner that serves their mutual interests.
It covers opportunities to develop integrated projects supporting the growth of the LPG market, community-based initiatives led by women, and efforts to promote safety awareness and build trust to encourage the adoption and sustained use of clean fuels.
Areas of cooperation include identifying opportunities to expand the LPG ecosystem, exchanging knowledge and expertise, assessing solutions suited to end users and target communities, and raising awareness of the initiative. The agreement provides for engagement with local and international regulatory perspectives through studies, workshops, roundtables, seminars and multilateral conferences.
WPC Energy Congress: Saudi Arabia Eyes Raising East-West Pipeline Capacity to 10 Million Barrels per Dayhttps://english.aawsat.com/business/5328753-wpc-energy-congress-saudi-arabia-eyes-raising-east-west-pipeline-capacity-10
WPC Energy Congress: Saudi Arabia Eyes Raising East-West Pipeline Capacity to 10 Million Barrels per Day
Prince Abdulaziz bin Salman speaks at the opening of the WPC Energy Congress in Riyadh (Asharq Al-Awsat)
Disruptions to global energy supplies put supply security and infrastructure resilience at the forefront of the 25th WPC Energy Congress in Riyadh on Monday, as Saudi Arabia reaffirmed its commitment to continued investment to strengthen its ability to withstand crises.
Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman said advance planning had enabled the Kingdom to deal with the repercussions of the crisis, stressing that "the word fear in the Saudi dictionary does not exist." He revealed plans to expand the East-West Pipeline to raise its capacity to 10 million barrels per day within two to three years.
For his part, Aramco President and CEO Amin Nasser said the company was studying, in coordination with the Ministry of Energy, additional options for crude oil exports and expanding storage capacity outside the Kingdom, as part of efforts to strengthen the resilience of the supply system and diversify its routes.
WPC Energy President Pedro Miras emphasized the need to balance energy security, sustainability and affordability, while US Energy Secretary Chris Wright said oil flows through the Strait of Hormuz had returned to 80% to 90% of pre-conflict levels, compared with 25% to 35% for refined petroleum products.
On the market outlook, OPEC Secretary General Haitham Al Ghais projected that global oil demand growth would rise to 1.7 million barrels per day in 2027 as some deferred demand materializes.
The conference, which Saudi Arabia is hosting for the first time in its more than 90-year history, is addressing a range of major energy issues, including supply security, markets, investment, technology, innovation, sustainability and human capital development.
In his opening address before a large gathering of ministers, officials and industry leaders, Prince Abdulaziz bin Salman said the Kingdom would overcome its current challenges, continue moving forward and fulfill its commitments as it pursues its vision, guided by its responsibility to future generations. He pointed to the scale of the transformation the Kingdom had undergone in a short period and its determination to continue shaping its future.
He explained that recent experiences had demonstrated the importance of advance preparation and building an energy system capable of adapting to different circumstances. Resilience, he said, is measured not only by the ability of systems to withstand shocks but also by their ability to repair damage, restore operations and continue meeting market needs. He said energy system resilience goes beyond spare production capacity, pipelines and power generation capacity to include maintenance, repairs, rerouting supplies, finding alternatives, recovering and, most importantly, continuing to meet market needs under pressure.
Prince Abdulaziz opened his remarks by declaring that fear has no place in the Saudi dictionary, stressing that the resilience of the Kingdom's energy system and the determination of its people strengthen its ability to confront crises, ensure continuity of supplies, continue its transformation and achieve the goals of Vision 2030.
Infrastructure
Prince Abdulaziz said recent developments in the region and the Kingdom had underscored that energy security cannot be taken for granted amid pressure on supply routes and attacks on infrastructure. He noted that Saudi Arabia believes the ability to withstand and confront such challenges must be built before crises occur. He highlighted the Kingdom's investments over several decades in infrastructure, spare capacity, storage, alternative export routes, technology, domestic supply chains and human capital.
The minister also said localization, for Saudi Arabia, goes beyond being an economic objective to become a strategic capability that supports business continuity and recovery when international supply chains are disrupted.
He explained that the resilience of energy systems cannot be measured solely by spare production capacity, pipelines or power generation capacity, but also by their ability to carry out maintenance and repairs, reroute supplies, find alternatives, recover and continue delivering supplies under pressure.
He added that resilience is a state of readiness built and maintained over time and demonstrated through action. The Kingdom's proven ability to withstand shocks and recover supports the reliability of international energy supplies and reinforces its continued standing as a trusted partner in the global economy.
Power Grids
Prince Abdulaziz stressed that there can be no energy future for all without energy security for all, emphasizing that energy security and the energy transition must go hand in hand.
He said Saudi Arabia would continue investing in reliable oil and gas supplies, expanding renewable energy deployment, strengthening power grids, storage capacity and gas infrastructure, developing low-emissions technologies and solutions, building domestic manufacturing capabilities, improving supply chain resilience and investing in human capital.
He also stressed that the Kingdom would continue implementing Vision 2030 plans and programs and investing in and developing its energy system and industrial capabilities. He reaffirmed Saudi Arabia's firm commitment to the security and well-being of its people as well as its international partnerships.
During a subsequent panel discussion, Prince Abdulaziz spoke about the East-West oil pipeline, describing it as an important example of infrastructure that provides alternative routes for transporting oil to markets and strengthens the Kingdom's ability to confront risks that could affect conventional supply routes. He revealed plans to expand the pipeline to carry 10 million barrels of oil per day within two to three years.
Advanced Technologies
For his part, WPC Energy President Pedro Miras highlighted in his opening remarks the Kingdom's pivotal and leading role in developing global energy systems through increased investment and critical innovations.
According to Miras, the world is moving toward developing advanced technologies and innovative energy solutions to maintain global energy security, achieve economic stability and help improve the lives of billions of people worldwide. He said these efforts come amid a rapidly evolving global economy that requires improvements in energy infrastructure and new, sustainable solutions.
He said energy security was essential to economic growth and social stability, and that a successful energy transition required steady and sustained investment. He pointed to the role of artificial intelligence, digitalization, new fuels and carbon storage technologies in shaping the sector's future.
Miras stressed the importance of international cooperation in achieving shared energy goals, saying collective action was the best way to ensure a secure and sustainable future for all.
US Solidarity
US Energy Secretary Chris Wright reaffirmed his country's unwavering support for Saudi Arabia, condemning what he described as cowardly attacks targeting the Kingdom, its infrastructure and its citizens. He stressed that the United States stands alongside its allies and partners in the Gulf region.
Speaking via video link during the WPC Energy Congress, Wright expressed pride in working with regional leaders amid what he described as unprecedented challenges to energy security.
He highlighted the importance of strengthening international cooperation to ensure stable energy supplies to global markets and enable Gulf producing countries to continue supporting their economies and protecting their citizens.
Wright accused Iran of seeking to harm the region's economies and energy security, emphasizing the need for closer coordination between the United States and its partners to confront challenges threatening supply security and the stability of global energy markets.
He added that oil flows through the Strait of Hormuz had recovered to between 80% and 90% of pre-conflict levels, equivalent to an average of around 13 million to 14 million barrels per day. He noted that increased oil flows through alternative pipelines had helped support supplies to global markets.
Global Demand in 2027
During another panel discussion, OPEC Secretary General Haitham Al Ghais said the organization expected global oil demand growth to rise to 1.7 million barrels per day in 2027 as deferred demand materializes following developments in the markets this year. He noted that OPEC had lowered its estimate for demand growth in 2026 to 400,000 barrels per day, down from the 1.4 million barrels per day projected at the beginning of the year.
Al Ghais explained that several factors had helped contain movements in oil markets, including a decline in Chinese imports due to accumulated inventories, withdrawals from strategic petroleum reserves in several countries, particularly members of the Organization for Economic Cooperation and Development (OECD), and slowing demand.
He described Saudi Arabia's East-West Pipeline as a model of advance preparation to ensure energy security, saying the Kingdom provides the best example of what could be described as an insurance policy for energy security. According to Al Ghais, oil still accounts for more than 30% of the global energy mix, and supplies remain an essential component of global energy security.
OPEC Secretary General Haitham Al Ghais participates in a session at the WPC Energy Congress (Asharq Al-Awsat)
Saudi-French Cooperation
Meanwhile, French Minister of the Economy, Finance and Industrial and Digital Sovereignty Roland Lescure said Saudi Arabia plays a pivotal role in strengthening global energy security and market stability. He praised the Kingdom's ability to adapt to recent disruptions and stressed the importance of expanding Saudi-French cooperation to protect critical infrastructure and secure energy supply chains.
According to the French minister, recent developments have brought energy security and price volatility back to the forefront of priorities for policymakers, companies and citizens. He emphasized that the current situation requires greater dialogue and cooperation among major players in energy markets.
He added that the shared responsibility lies in stabilizing markets, maintaining open and reliable energy flows and ensuring that prices remain at levels affordable to economies and citizens.
Protecting Oil Facilities
For his part, Aramco President and CEO Amin Nasser warned that the consequences of attacks on energy infrastructure in the region were not confined to its markets but extended to economies and markets around the world. He stressed that protecting energy facilities and supply routes requires international cooperation amid the challenges that recent disruptions pose to global energy security.
He explained that disruptions in the Strait of Hormuz and attacks on energy infrastructure in the region had exposed the extent to which the different links in the global supply chain are interconnected. He said continued disruptions were intensifying pressure on crude oil and refined petroleum product markets, particularly diesel.
Nasser stressed that Saudi Arabia's energy system had continued operating with high reliability throughout the crisis, thanks to strategic investments in infrastructure and operational capabilities, along with diverse export routes, integrated facilities and digital protection systems.
Aramco CEO Amin Nasser speaks at the WPC Energy Congress (Asharq Al-Awsat)
Export Options
Nasser revealed that Aramco was currently studying, in coordination with the Ministry of Energy, additional options for crude oil exports, alongside expanding storage capacity outside the Kingdom, deploying advanced technologies to inspect facilities, accelerating maintenance and repair work, and limiting damage.
He said more than 90% of the materials used to restore operations over the past eight months had been sourced locally, allowing restoration work to be completed in hours or days rather than weeks or months.
He added that localizing supply chains was an important factor in strengthening crisis preparedness, alongside its role in supporting the local economy, developing domestic industries and creating jobs.
Regarding the company's future plans, Nasser disclosed that expanding gas production was a central pillar of Aramco's strategy, with a target of increasing sales gas production by around 80% by 2030 compared with 2021 levels.
During one of the sessions, Nigeria's Minister of State for Petroleum Resources Heineken Lokpobiri affirmed his country's solidarity with Saudi Arabia following the recent attacks against it, stressing the importance of international cooperation to address energy security challenges and ensure the availability of supplies at affordable prices. Meanwhile, Algeria's Minister of State and Minister of Hydrocarbons Mohamed Arkab said his country was working to strengthen its production capacity and expand investments in the natural gas sector, supporting energy security in Algeria and Europe.
Aramco President & CEO: Attacks on the Region’s Energy Infrastructure Threaten Global Economieshttps://english.aawsat.com/business/5328676-aramco-president-ceo-attacks-region%E2%80%99s-energy-infrastructure-threaten-global
Aramco President & CEO: Attacks on the Region’s Energy Infrastructure Threaten Global Economies
Amin Nasser speaks at the 25th WPC Energy Congress in Riyadh (Asharq Al-Awsat)
Amin H. Nasser, President & CEO of Aramco, has warned that the consequences of attacks on the region’s energy infrastructure extend beyond its own markets to economies and markets around the world. He stressed that protecting energy facilities and supply routes requires international cooperation, as recent disruptions pose challenges to global energy security.
Speaking at the 25th WPC Energy Congress in Riyadh, Nasser said disruptions in the Strait of Hormuz and attacks on energy infrastructure across the region had exposed the extent to which the links in the global supply chain are interconnected. He noted that continued disruptions were intensifying pressure on crude oil and refined product markets, particularly diesel.
He added that available commercial inventories now offer only a limited buffer against shocks, warning against relying on them as a permanent solution for energy security. He stressed that restoring the flow of supplies through the Strait of Hormuz and rebuilding market confidence remain essential to easing pressure across the energy supply chain.
Nasser explained that Saudi Arabia’s energy system had continued to operate with high reliability throughout the crisis, supported by strategic investments in infrastructure and operational capabilities, diversified export routes, integrated facilities, and digital protection systems.
Proactive Investments Strengthen Resilience
Nasser stressed that resilience in the energy sector cannot be achieved through a single pipeline, facility, or technology. Rather, it requires an integrated system encompassing infrastructure, spare production capacity, multiple export routes, and the financial and human resources needed to maintain operations and investment during crises.
He added that Aramco, in coordination with the Ministry of Energy, was exploring additional crude oil export options, alongside expanding storage capacity outside the Kingdom and deploying advanced technologies to inspect facilities, accelerate maintenance and repair work, and limit damage.
He emphasized that the costs of investments needed to build resilience are borne by the entities that undertake them, while the benefits extend to economies, consumers, businesses, and investors. Avoiding disruptions, he noted, has economic value that deserves greater recognition, helping sustain the investments essential to energy security.
iktva Supports Supply Continuity
Nasser noted that Aramco’s In-Kingdom Total Value Add program (iktva), launched more than a decade ago, had helped establish a domestic supply base and strengthen the company’s ability to respond to exceptional circumstances.
He said that more than 90% of the materials used to restore operations over the past eight months had been sourced locally, enabling restoration work to be completed in hours and days rather than weeks and months.
He added that localizing supply chains is an important factor in strengthening preparedness for crises, while also supporting the domestic economy, developing national industries, and creating jobs.
Nasser stressed that building resilience requires sustained investment over many years, rather than short-term decisions. He also highlighted the importance of protecting the capabilities already developed and preparing for the Kingdom’s future needs.
80% Increase in Gas Production Targeted by 2030
Regarding the company’s future plans, Nasser said expanding gas production was a key pillar of Aramco’s strategy, with the company targeting an approximately 80% increase in sales gas production by 2030 compared with 2021 levels.
He added that gas expansion complements the National Renewable Energy Program, which includes solar and wind projects aimed at diversifying electricity generation sources and reducing emissions.
He explained that combining gas with renewable energy supports a more diversified and resilient electricity generation mix, helping improve resource utilization and meet the needs of the domestic economy. This is being pursued alongside the development of carbon capture, utilization and storage (CCUS), artificial intelligence, and advanced digital solutions.
He noted that these efforts align with the objectives of Saudi Vision 2030, particularly economic diversification, the development of local capabilities, industrial growth, job creation, and the establishment of a more sustainable energy system.
The Middle East: A Pillar of Global Energy Security
Nasser stressed that the Middle East remains a key pillar of global energy security, given its substantial share of proven oil reserves and spare production capacity. He noted that more than 90% of the world’s spare production capacity is concentrated in the region, according to his remarks.
He added that diversifying supply sources does not necessarily mean being able to diversify the geographical locations from which energy originates. He warned that attacks on the region’s infrastructure have repercussions for markets and economies worldwide.
He emphasized that protecting the energy facilities and transportation routes on which the global economy depends requires joint international efforts. No single country, regardless of its capabilities, can protect every element of the global supply system on its own.
Multiple Pathways for the Energy Transition
Regarding the future of energy, Nasser said transition pathways would differ from one country to another according to their needs and economic circumstances, stressing that oil and gas would remain important components of the global energy mix.
He added that providing reliable and affordable energy is essential to supporting economic growth, creating jobs, and improving living standards, particularly in developing economies facing challenges in meeting growing energy demand.
He concluded by emphasizing the importance of building an integrated energy system combining oil, gas, and renewable energy, one that operates efficiently under normal conditions and can withstand pressure during crises. Such a system, he said, would strengthen energy security in Saudi Arabia and around the world while supporting future growth.
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