Oil prices fell on Friday but remained on track for a weekly gain of more than 8% as continued attacks on Middle East shipping routes raised concerns about prolonged supply disruptions. Brent crude futures settled $3.02, or 2.81%, lower at $104.61 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.43, or 2.37%, to $100.05 per barrel. Both benchmarks reached their highest levels since mid-May during the session.

Prices moved lower after reports that Middle Eastern foreign ministers were working on a temporary agreement with Iran to manage shipping through the Strait of Hormuz. The possibility of progress on the strait helped ease some of the market’s immediate supply concerns, although the broader risks to regional energy flows remain significant.

Saudi Arabia is facing additional disruption. The International Energy Agency reported that Saudi crude supply fell by 2.3 million barrels per day in August to approximately 6 million barrels per day, the lowest level in more than three decades, following attacks on Saudi energy infrastructure.

Concerns also grew around the East-West Pipeline, which Saudi Arabia uses to move crude toward the Red Sea and bypass the Strait of Hormuz. Reports that a pumping station had been damaged added another potential constraint on the kingdom’s ability to move oil to export markets.

Meanwhile, shipping through the Strait of Hormuz remains severely restricted. Preliminary tracking data showed only seven vessel transits on Thursday, down from 11 the previous day. Before the war began in late February, the strait handled roughly 125 commodity vessels and approximately one-fifth of global daily oil and LNG supplies.

The supply disruptions are being felt particularly strongly in refined products. The U.S. national average diesel price rose above $6 per gallon for the first time on Thursday. Tight Gulf shipping conditions, combined with refinery disruptions in Russia following Ukrainian attacks, are putting additional pressure on global diesel supplies.

Diesel and other refined products are currently facing greater supply pressure than crude oil itself, as the combination of Middle East shipping restrictions and Russian refining outages limits available fuel supplies. This is especially important for the transportation and rail industries, where diesel is a major operating expense.

• Where: Loews Arlington Hotel
• Attending: Brian Baker (239.297.4519), David Cohen (954-729-4774), and Curtis Chandler (239-405-3365)
• Conference Website

• Where: The Westin Galleria Dallas
• Attending: David Cohen (954-729-4774), and Curtis Chandler (239-405-3365)
• Conference Website

• Where: The Westin Galleria Dallas
• Attending: Brian Baker (239.297.4519)
• Conference Website