Focus on Fracking

Strategic Petroleum Reserve is the lowest since February 18, 1983; total of all US oil supplies are the lowest since March 30th, 1984….gasoline supplies at a 37 week low; distillates exports at all time high leaves distillate inventories at the lowest summertime level in thirty years

meanwhile, natural gas prices finished lower for a sixth straight week on diminishing cooling demand and a larger-than-expected injection of gas into storage….after falling 4.9% to $2.747 per mmBTU last week on record production and on more than adequate inventories, the price of the benchmark natural gas contract for September delivery opened 3.4 cents higher on Monday, supported by short-term forecasts for strong cooling demand, then traded within a narrow band near $2.765 for the balance of the day and settled 3.4 cents higher at $2.781 per mmBTU, as cooler forecast trends and abundant supply extinguished the early momentum for natural gas futures, despite regionally strong demand expected in the two-week window….September natural gas then opened 8.4 cents lower on Tuesday, as the ebbing cooling demand was expected to give way to more comfortable temperatures, and settled 9.9 cents lower at $2.682 per mmBTU as cooler forecasts across key eastern demand centers and expectations for another storage build above seasonal norms outweighed improving LNG feedgas demand and a modest decline in daily production…natural gas prices opened slightly higher on Wednesday and traded within a narrow band between $2.660 and $2.695 for rest of the session, on steady LNG demand, waning cooling demand, and positioning ahead of Thursday’s storage report, and settled six-tenth of a cent higher at 2.688 per mmBTU, as modest improvements in daily supply-demand balances supported the front of the curve while traders remained focused on Thursday’s EIA storage report…natural gas prices opened 2 cents lower on Thursday, and fell to an intraday low of $2.616 following a bearish injection report, then was little changed into the afternoon to settle 4.8 cents lower at $2.640 per mmBTU after the US EIA reported a slightly larger-than-expected storage injection, reinforcing the market’s view that supplies remained ample, despite easing production and strengthening LNG feedgas demand…natural gas prices remained weak during early Friday trading, as the market assessed ample supply and a shrinking window for intense cooling demand, then inched higher at midday, as bargain buyers stepped in following the weeklong slump amid hints of rising LNG demand, and settled 2.2 cents higher at $2.662 per mmBTU as stronger LNG feedgas and elevated power demand provided support following the previous session’s storage-driven decline, even as a cooler weather outlook and ample inventories continued to temper the market’s upside. leaving natural gas prices 3.1% lower for the week

The EIA’s natural gas storage report for the week ending July 31st indicated that the amount of working natural gas held in underground storage rose by 33 billion cubic feet to 3,117 billion cubic feet by the end of the week, which left our natural gas supplies 12 billion cubic feet, or 0.4% below the 3,129 billion cubic feet of gas that were in storage on July 31st of last year, but 195 billion cubic feet, or 6.7% above the five-year average of 2,922 billion cubic feet of natural gas that had typically been in working storage as of the 31st of July over the most recent five years….the 33 billion cubic foot injection into natural gas storage for the cited week was more than the 27 billion cubic foot injection into storage that the market had been expecting ahead of the report, and it was way more than the 13 billion cubic foot of gas that were injected into natural gas storage during the corresponding week of 2025, and also more than the average 23 billion cubic foot injection into natural gas storage that had been typical for the last week in July over the past five years…

The Latest US Oil Supply and Disposition Data from the EIA

US oil data from the US Energy Information Administration for the week ending July 31st showed that after a decrease in our refinery throughput and an increase in our oil imports, we still needed to pull a bit of oil out of our stored crude supplies for a record fifteenth consecutive week, and for the 37th time in sixty-two weeks, as a sizable withdrawal of oil from the SPR was enough to keep commercial supplies from falling further…. Our imports of crude oil rose by an average of 515,000 barrels per day to average 6,198,000 barrels per day, after falling by an average of 124,000 barrels per day during the prior week, while our exports of crude oil rose by an average of 218,000 barrels per day to average 3,685,000 barrels per day, which, when used to offset our imports, meant that the net of our trade of oil worked out to an import average of 2,513,000 barrels of oil per day during the week ending July 31st, an average of 297,000 more barrels per day than the net of our imports minus our exports during the prior week... At the same time, transfers to our oil supplies from Alaskan gas liquids, from natural gasoline, from condensate, and from unfinished oils averaged 3,000 barrels per day less than the prior week at 223,000 barrels per day, while during the same week, production of crude from US wells was 8,000 barrels per day higher at 13,804,000 barrels per day. Hence, our daily supply of oil from the net of our international trade in oil, from transfers, and from domestic well production appears to have averaged a total of 16,540,000 barrels per day during the July 31st reporting week…

Meanwhile, US oil refineries reported they were processing an average of 17,153,000 barrels of crude per day during the week ending July 31st, an average of 183,000 fewer barrels per day than the amount of oil that our refineries reported they were processing during the prior week, while over the same period, the EIA’s surveys indicated that an net of 52,000 barrels of oil per day were being pulled out of the supplies of oil stored in the US… So, based on all that reported & estimated data, the crude oil figures provided by the EIA appear to indicate that our total working supply of oil from storage, from net imports, from transfers, and from oilfield production during the week ending July 31st averaged a rounded 561,000 fewer barrels per day than what our oil refineries reported they used during the week. To account for the difference between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a [ +561,000 ] barrel per day figure onto line 16 of the weekly U.S. Petroleum Balance Sheet, in order to make the reported data for the supply of oil and for the consumption of it balance out, a fudge factor that they label in their footnotes as “unaccounted for crude oil”, thus indicating there must have been a error or omission of that amount in the week’s oil supply & demand figures that we have just transcribed.... Moreover, since 468,000 barrels per day of demand for oil supply could not be accounted for in the prior week’s EIA data, that means there was a 1,029,000 barrel per day difference between this week’s oil balance sheet error and the EIA’s crude oil balance sheet error from a week ago, and hence the changes to supply and demand from that week to this one that are indicated by this week’s report are somehow off by that much, and therefore completely useless.... However, since most oil traders react to to the figures in these weekly EIA reports as if they were gospel, and since these weekly figures therefore often drive oil pricing and hence decisions to drill or complete oil wells, we’ll continue to report this data just as it’s published, and just as it’s watched & believed to be reasonably reliable by most everyone in the industry…(for more on how this weekly oil data is gathered, and the possible reasons for that “unaccounted for” oil supply, see this EIA explainer….also see this March 2023 twitter thread from an EIA administrator addressing these ongoing weekly errors, and what they had once hoped to do about it).

This week’s net 52,000 barrel per day average decrease in our overall crude oil inventories came as an average of 354,000 barrels per day were being added to our commercially available stocks of crude oil, while 406,000 barrels per day were being pulled out of our Strategic Petroleum Reserve, the nineteenth consecutive Iran war related withdrawal from the SPR, including the four largest draws in SPR history, which left the SPR level at 304,809,000 barrels, the lowest since it was initially being filled in March 1983....with both commercial oil and the SPR both at long term lows, that left the Total of all US Oil Supplies at 711,796,000 barrels, down from 870,774,000 barrels on April 17th, and the lowest since March 30th, 1984….After those recent draws on the SPR and also on commercial supplies, and with total fuel inventories tracking near multi-year lows, our Total Supplies of Crude Oil and Petroleum Products, including the SPR, fell by 811,000 barrels to 1,525,539,000 barrels during the week ending July 24th, after our total supplies had fallen to a 23 year low four weeks earlier….

Further details from the weekly Petroleum Status Report (pdf) indicated that the 4 week average of our oil imports rose to 5,844,000 barrels per day last week, which was 4.4% less than the 6,113,000 barrel per day average that we were importing over the same four-week period last year, while the four week average of our exports rose to 3,557,000 barrels per day last week, which was still 6.3% more than the 3,347,000 barrel per day average that we were exporting last year year at this time... This week’s crude oil production was reported to be 8,000 barrels per day higher at 13,804,000 barrels per day as the EIA’s estimate of the output from wells in the lower 48 states was unchanged at 13,376,000 barrels per day, while Alaska’s oil production was 8,000 barrels per day higher at 428,000 barrels per day...US crude oil production had reached a pre-pandemic high of 13,100,000 barrels per day during the week ending March 13th 2020, so this week’s reported oil production figure was 5.4% higher than that of our pre-pandemic production peak, and was also 42.3% above the pandemic low of 9,700,000 barrels per day that US oil production had fallen to during the third week of February of 2021.

US oil refineries were operating at 96.5% of their capacity while processing those 17,153,000 barrels of crude per day during the week ending July 31st, down from 97.2% the prior week, but still above the recent normal utilization for this or any time of year….the 17,153,000 barrels of oil per day that were refined that week were 0.2% more than the 17,124,000 barrels of crude that were being processed daily during the week ending August 1st of 2025, but were 3.5% less than the 17,777,000 barrels that were being refined during the pre-pandemic week ending August 2nd, 2019, when our refinery utilization rate was at 96.4%, which was close to the pre-pandemic normal utilization rate for this time of year…

With the decrease in the amount of oil that was being refined this week, gasoline output from our refineries was also lower, decreasing by 309,000 barrels per day to 9,569,000 barrels per day during the week ending July 31st, after our refineries’ gasoline output had increased by 178,000 barrels per day during the prior week... This week’s gasoline production was 2.4% lower than the 9,803,000 barrels of gasoline that were being produced daily over the week ending August 1st of last year, and 8.2% less than the gasoline production of 10,421,000 barrels per day seen during the prepandemic week ending August 2nd, 2019….at the same time, our refineries’ production of distillate fuels (diesel fuel and heat oil) decreased by 144,000 barrels per day to 5,230,000 barrels per day, after our distillates output had increased by 15,000 barrels per day during the prior week. Even with that decrease, our distillates output was 2.4% more than the 5,105,000 barrels of distillates that were being produced daily during the week ending August 1st of 2025, but 1.1% less than the 5286,000 barrels of distillates that were being produced daily during the pre-pandemic week ending August 2nd, 2019....

With this week’s decrease in our gasoline production, our supplies of gasoline in storage at the end of the week fell for the 20th time in twenty-five weeks, decreasing by 1,643,000 barrels to a thirty-seven week low of 211,301,000 barrels during the week ending July 31st, after our gasoline inventories had increased by 7,000 barrels during the prior week. Our gasoline supplies fell this week as the amount of gasoline supplied to US users fell by 10,000 barrels per day to 9,031,000 barrels per day, because our imports of gasoline fell by 196,000 barrels per day to 463,000 barrels per day while our exports of gasoline fell by 83,000 barrels per day to 807,000 barrels per day… After fifty-one gasoline inventory withdrawals over the past seventy-six weeks, our gasoline supplies were 7.7% lower than last August 1st’s gasoline inventories of 227,082,000 barrels, and about 7% below the five year average of our gasoline supplies for this time of year…

After this week’s decrease in distillates production, our supplies of distillates fell for the eleventh time in twenty-six weeks, decreasing by 3,473,000 barrels to 107,159,000 barrels during the week ending July 31st, the lowest summertime level in thirty years, after our distillates supplies had increased by 1,062,000 barrels during the prior week... Our distillates supplies fell this week because the amount of distillates supplied to US markets, an indicator of domestic demand, rose by 417,000 barrels per day to 3,941,000 barrels per day, and because our exports of distillates rose by 98,000 barrels per day to a record high of 1,884,000 barrels per day, while our imports of distillates rose by 1,000 barrels per day to 99,000 barrels per day... After 26 withdrawals from distillates inventories over the past 57 weeks, our distillates supplies at the end of the week were 5.1% lower than the 112,971,000 barrels of distillates that we had in storage on August 1st of 2025, and were about 12% below the five year average of our distillates inventories for this time of the year…

Finally, after the increase in our oil imports and the decrease in our oil refining, and after the big withdrawal from the SPR, our commercial supplies of crude oil in storage rose for the 13th time in twenty-six weeks, and for the 25th time over the past year, increasing by 2,479,000 barrels over the week, from 404,508,000 barrels on July 24th to 406,987,000 barrels on July 31st, after our commercial crude supplies had decreased by 7,167,000 barrels to a 94 month low over the prior week….After this week’s increase, our commercial crude oil inventories were still about 6% below the recent five-year average of commercial oil supplies for this time of year, while they were still about 16% above the average of our available crude oil stocks as of the end of July over the 5 years at the beginning of the past decade, with the difference between those comparisons arising because it wasn’t until early 2015 that our oil inventories had first topped 400 million barrels. After our commercial crude oil inventories had jumped to record highs during the Covid lockdowns in the Spring of 2020, then jumped again after February 2021’s winter storm Uri froze off US Gulf Coast refining, but then fell sharply due to increased exports to Europe following the onset of the Ukraine war, only to jump again following the Christmas 2022 refinery freeze-offs, changes in our commercial crude supplies had been less extreme up until the onset of the Iran war, when they were initially built up to a three year high by mid-April...However, after falling sharply over the past three months, our commercial crude oil inventories as of this July 31st were 3.9% below the 423,662,000 barrels of oil we had in commercial storage on August 1st of 2025, and were 5.2% less than the 429,321,000 barrels of oil that we had in storage on August 2nd of 2024, and 8.7% less than the 445,622,000 barrels of oil we had left in commercial storage on August 4th of 2023…

This Week's Rig Count

The US rig count was unchanged over the week ending August 7th, as the number of rigs targeting oil was up by three, the count of rigs targeting natural gas was down by three, and miscellaneous rigs were unchanged…for a quick snapshot of this week's rig count, we are again including below a screenshot of the rig count summary table from Baker Hughes...in the table below, the first column shows the active rig count as of August 7th, the second column shows the change in the number of working rigs between last week’s count (July 31st) and this week’s (August 7th) count, the third column shows last week’s July 31st active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running on the Friday of the same week of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting period a year ago, which in this week’s case was Friday, the 8th of August, 2025…

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Ohio EPA called to Canfield creek for diesel odor (WKBN) — Crews were called to a Canfield creek after reports of a diesel fuel odor Friday afternoon. It happened at Sawmill Creek behind Canfield High School. The Canfield Fire Department said crews found a sheen inside the creek after receiving the call. Officials from the fire and street department as well as the Ohio EPA walked up to the creek but couldn’t find the source. The Ohio EPA lowered booms into the creek and says it’s investigating. “While we continue to investigate the source and cause of this incident, crews have placed booms into the creek to help contain spilled material to prevent it from traveling any further,” The Ohio EPA said in a statement.

Why do Ohio researchers want your baby teeth? - (AP) – For more than four decades, oilfield brine has been spread across Ohio roadways, but its radioactive contents are known to cause serious health issues. Oilfield brine, a byproduct of oil and gas development, is applied on roads in some townships in Licking County in order to melt ice and control dust. Researchers from the Ohio State University want to understand how exposure to oilfield brine could be impacting the long-term health of people who live in communities where it is spread. That includes parts of Licking, Coshocton and Ashtabula counties. Dr. Arbor Quist is an environmental epidemiologist and an assistant professor at OSU, and is the principal investigator on this exploratory study, leading and overseeing the team involved.“I’ve been working on issues related to the health effects of oil and gas development for the past decade,” Quist said. “But this project is just starting this summer, and so the work in Licking County is just starting this summer.” This work will involve collecting data in unconventional ways: through gathering toenail clippings, naturally shed baby teeth and soil samples. Adults who have lived in Licking County for the past 12 months are eligible to donate their toenail clippings. If they are donating a baby tooth, the child who the tooth is from must have lived in the county for the second and third trimesters of pregnancy and during their first year of life. The researchers are offering gift cards for participation.Oilfield brine is not just an issue in Licking County. The Ohio Department of Natural Resources studied brine from 107 wells across 26 different counties and 10 different formations in Ohio. All of them were considered too radioactive to discharge into the environment, according to the Ohio Administrative Code.Quist helped to create an interactive map that used an AI pipeline to sort through data on where oilfield brine is spread on roads across the state.Chronic exposure to high levels of radium, like that found in wellfield brine, can “result in an increased incidence of bone, liver or breast cancer,” according to the federal Environmental Protection Agency.Radium is chemically similar to calcium, meaning that our bones absorb it as if it was calcium.As radium decays, it creates radon, a colorless, odorless gas that is the second leading cause of lung cancer in the country. Licking County is considered “ground zero” for radon in the United States, according to a 2025 investigation from The Columbus Dispatch.The radium doesn’t just disappear after the brine is spread.“The rain can wash it into people’s gardens where they grow food to feed their kids,” said Jacque Morgan, a concerned Licking County resident who has been heavily involved in advocacy work to ban oilfield brine on roadways. “It can move down to the streams, get into our water. But it doesn’t dissipate.”Spreading radioactive oilfield brine has been legal in Ohio since 1985. Since the late 1800s, more than 100,000 conventional wells have been drilled in eastern Ohio, according to ODNR. Because wellfield brine is considered waste material that well owners must dispose of, some offer it free to municipalities, counties and townships willing to take it for use on the roads.Activists like Morgan and those at the Buckeye Environmental Network are fighting to change that.Ohio Senate Bill 329 would ban the practice of spreading well brine on roads in Ohio. The Senate Agriculture and Natural Resources Committee had a second hearing on the bill in February, but no action since. Morgan said they met with Sen. Tim Shaffer, who represents Fairfield, Licking and Perry counties.“Shaffer gave us a lot of time,” Morgan said. “He listened to what we had to say and asked questions. To me (Senate Bill 239) should be a non-controversial, nonpartisan issue. It has to do with the health and welfare of everybody that’s within the environment where this is being spread.” There are other solutions to control ice and dust on roads besides oilfield brine. Granville Township has switched from oilfield brine to making their own de-icer. Through using a water and road salt mixture, Granville is able to avoid the contaminants in oilfield brine. Morgan said that she wishes other Licking County townships would choose to prioritize health like this.“When I see greed being a higher priority than health and welfare, that’s upsetting,” Morgan said. “If you’re getting the benefit of the gas and the oil, then give us the benefit of healthy air to breathe and ground to walk on and vegetables to eat and water to drink.”On Sept. 19, Quist will be at the Granville Farmers Market to discuss the effects of radium on the body and to connect with parents of children living in areas where oilfield brine is spread in the hopes of talking about their research.“People seem interested and curious,” Quist said. Morgan said that she’s not sure whether Quist’s research will change anything about the reality of oilfield brine in Licking County. But she hopes that further knowledge about the brine’s impact can someday make things better.“I hope that it will put another couple of bricks on the scales of justice and reasonable choices for our quality of life and health,” said Morgan.

Recent gas line scares raise questions about Ohio's safeguards: 3News Investigates - — A recent gas-line strike forced families from their Macedonia homes, and left them wondering how close they came to disaster. It marked another dangerous incident involving underground drilling, as 3News Investigates continues to explore how local communities and the state of Ohio navigate the risk and challenges that come with that type of work. Ohio has recently strengthened its excavation rules, but the new law does not settle who is responsible when something goes wrong. For the Nash family, the fear began when someone started pounding on the door of their home on the afternoon of April 16. "It felt like an emergency. After you start smelling that gas, and the way they were banging on that door …" James Nash Jr. recounted. "We didn't know about the drilling they were getting ready to do." James was still recovering from serious back surgery at that time; his wife suffers from a bad knee and her mobility is limited. A rushed escape from their home of 30 years was easier said than done. And it wasn't just the sudden evacuation that frightened the family. It was what could have happened. "We could smell that gas. It was horrible!" James said, shaking his head. "It was just by the grace of God that we didn't have an explosion like Twinsburg." Macedonia city records confirm a crew struck an underground gas line during a dig to install fiberoptics internet. Homes were evacuated, and emergency crews responded within minutes. Families were later allowed to safely return, but the scare has been difficult to shake, and Nash wants to see change. "Something needs to be put into place by federal, state, and local governments all working together to do something about this," Nash insisted. The state of Ohio now has new protections intended to help. House Bill 227 took effect in June — just weeks before an enormous gas explosion in Twinsburg Township leveled several homes and damaged dozens more. The bill strengthens the state's call-before-you-dig rules by requiring contractors to notify 811 at least two days before digging, but no more than 16 days in advance. It also mandates more formal training for anyone involved with underground utility work and creates a statewide database to track damage to underground facilities. State Rep. Joe Miller, a Democrat from Amherst, was a co-sponsor of the legislation. "This is supposed to be put in safeguards, transparency, and accountability," Miller explained. The bill received bipartisan support and passed the Ohio House and Senate without a single "no" vote, but lawmakers acknowledge there are plenty of wrinkles left to iron out. H.B. 227's new requirements were already in place June 25, when the Twinsburg explosion occurred. 3News Investigates has reached out to Twinsburg and Uniti, the company responsible for the fiberoptics dig, to confirm that all of the latest state protocols were followed. At the time of this report, Twinsburg had not responded to our question; Uniti referred us to the same statement that they published the day after the blast. No errors or violations have been reported at this time, but an investigation is still ongoing.

It's the summer of natural gas pipeline ruptures in Northeast Ohio: Today in Ohio - Multiple gas line strikes. A neighborhood explosion. Construction projects halted across Northeast Ohio. It has felt like an unusually dangerous summer beneath our feet. We’re talking about the data that suggests there may be a reason for that, on Today in Ohio. Listen online here. Editor Chris Quinn hosts our daily half-hour news podcast, with editorial board member Lisa Garvin, impact editor Leila Atassi and content director Laura Johnston. Here’s what we’re asking about today:This is the summer of underground gas line accidents, with reports coming from all over the place and one case leading to a neighborhood explosion. It’s not our imagination. Reporter Michael Johnson found that safety complaints have jumped. What are the numbers? Are Ohio Republicans, whose billion dollar-plus gift of tax dollars to the tech industry filled the state with energy-sucking data centers, now going too far to battle them, with voters ready to wring their necks? What’s one proposal to rein in the centers?

Ohio's 811 complaints surged as regulators found repeated failures to call and mark lines - — Ohio regulators received 432 underground-utility safety complaints in 2025, more than 2½ times the number filed a year earlier. The state’s Underground Technical Committee reviewed 279 cases and found violations in 251, or 90%, according to its 2025 damage-prevention report. Excavators failed to contact OHIO811 before digging in 134 cases, accounting for 53% of the findings. Utilities failed to mark underground facilities on time in 94 cases, or 37%. Together, those failures accounted for about 91% of the cases in which violations were found. The enforcement data add context to cleveland.com’s original article on recent gas-line strikes in Orange and Twinsburg Township. They show that Ohio’s safeguards can fail at either end of the 811 process: An excavator may dig without providing notice, or a utility may fail to locate and mark buried facilities on time. The findings do not establish how often underground lines were damaged or determine responsibility for the recent Northeast Ohio incidents. Public Utilities Commission of Ohio staff investigate complaints and prepare reports of inquiry for the Underground Technical Committee. The committee reviews the reports and recommends fines, other penalties or no enforcement action. The PUCO generally imposes the committee’s recommendations. The process begins when an excavator contacts OHIO811 with a project’s location and planned starting date. OHIO811 alerts utilities that may have buried facilities at the site. Each utility must locate and mark its facilities or report through the system that it has none at the site. During the period covered by the 2025 damage-prevention report, excavators generally had to provide at least 48 hours’ notice, and utilities had 48 hours to mark their facilities. A law that took effect June 9, 2026, changed the requirement to at least two working days, excluding the day of notification. Utilities generally must locate and mark their facilities within the same period. The other 23 violations included failures to protect utilities during public projects, follow special notification rules for interstate or hazardous-liquid pipelines, register with OHIO811 and observe excavation restrictions near marked facilities.The committee assessed monetary fines on 225 occasions totaling $203,950. It also imposed training requirements, written process-improvement plans or both in 153 instances. The report said fines were used when violations created safety hazards, respondents had extensive histories of noncompliance or earlier corrective requirements had not been completed. State law permits fines of up to $2,500 for a first violation and $5,000 for a subsequent violation. PUCO staff received 164 complaints in 2024 and 432 in 2025, an increase of about 163%. The report does not explain the increase or attribute it to more excavation, broadband construction, outdated records or additional damage to buried lines. The complaint total is not a statewide count of utility strikes. Complaints are voluntarily submitted by an “aggrieved person,” someone with duties under the damage-prevention law who was directly involved in or affected by an alleged violation. Cases filed late in one year also may be decided the next year. The report said complaints submitted during the fourth quarter of 2025 would be reviewed in early 2026 and cautioned that its complaint-driven cases may not represent the frequency of violations throughout Ohio.The report’s statewide figures cover underground-utility violations generally, not only natural gas lines, and do not break the cases down by county, project type or utility. Those limitations are important when considering the recent Northeast Ohio incidents.A construction crew struck an unmarked legacy gas service line in Orange on July 29. The line had served a building that no longer exists. Emergency crews found no gas inside surrounding buildings, and the line was shut off in less than two hours, according to cleveland.com’s original article.In Twinsburg Township, a contractor installing fiber-optic cable struck a gas line before a June 25 explosion. The blast destroyed three homes, damaged at least 36 others and injured two people, WKYC reported.The 2025 enforcement data predate both incidents and cannot establish responsibility for either.

Orange mayor working with Enbridge Gas to try to prevent future gas line breaks -– Village officials have set up a meeting with Enbridge Gas Ohio and the Northeast Ohio Mayors and City Managers Association to discuss the gas line breaks that have occurred recently in Northeast Ohio and what can be done to try to prevent them in the future. On July 30, officials in Orange and Solon temporarily halted work on the Miles Road waterline replacement project after three gas line breaks during construction, the latest of which happened that day. The July 30 incident marked the second time in two days that a line was hit. The third gas line break happened about two weeks earlier. “This problem is not limited to Orange Village,” Mayor Judson Kline told Village Council Wednesday (Aug. 5). “It happens throughout the region, and we need to work together to find ways in which this cannot happen in our communities.” Kline said he has had “numerous conversations” with Enbridge Gas and the village’s Service Department since the gas line breaks occurred. “This is something that (Enbridge needs) to address and take responsibility for in full,” he said. “That will be addressed at the meeting that is being planned through the Mayors and (City) Managers Association that’s coming up in a couple weeks. “We’ll have a good conversation with an outcome that I think will result in a better situation for all of us.” Kline also said officials from both Orange and Solon, along with representatives from Enbridge Gas and Terrace Construction of Cleveland – the contractor for the waterline replacement project – met July 30 at Village Hall to examine what caused the gas line strikes, review existing safety procedures and develop corrective measures to prevent additional disruptions. “We were fortunate,” Kline said. “We had several breaks in our gas line, and any one of them could have been an absolute disaster. “Fortunately, quick action through our Service, Fire and Police departments and their counterparts in Solon avoided problems that could have turned real ugly really fast. “We were able to get the gas turned off, Enbridge came in and got the contractor to stop their work so that we can resolve it and make sure that these kinds of situations don’t happen again.” Terrace Construction began construction on the waterline replacement project July 6. The new 12-inch water main is being installed along the centerline of Miles Road, running from just west of Naiman Parkway to just east of the Harper Road intersection. The joint project, with the City of Solon, will be used by both municipalities. The project is expected to take about four months to complete.

Proposed Enbridge gas price hike ignites community backlash - (WJW) — A proposed natural gas price increase has ignited backlash from some customers. “Where does the line stop? Where do you draw the line?” asked Corey Autry. “Their prices just go up and up and up,” said Jack Rosati. Enbridge Gas Ohio asked the Public Utilities Commission of Ohio for permission to raise rates about $7.60 per month or about $91 dollars per year. PUCO organized a meeting Thursday night at the Akron Public Library to hear from customers, one of three planned this month. “It’s an opportunity for the public to come forward and offer any comments or concerns they have on the case,” said PUCO Commissioner John Williams. Enbridge spokesperson Stephanie Moore said the increase is needed to manage financial pressures on multiple fronts. “Our operations and maintenance costs have gone up along with construction expenses, so things for meters, pipelines, and then work associated with that have all risen in past few years,” said Moore, “And to reconcile tax accounts related to post retirement plans and then to recovery costs associated with previous system investment.” She said natural gas is still one of the most affordable energies and that Enbridge Gas Ohio customers have some of the lowest rates in the state and benefit from Enbridge’s “robust” system and supply sources. But some customers cited reported profits while they’re getting by. “Their profits last quarter were like $1.4 billion,” said Robert Adams, “When is enough enough when do we step back and say let’s take care of the middle class that takes care of the country.” Commissioner Williams listened intently to each speaker. He said all concerns will be factored into PUCO’s final decision to be made around the end of the year. “Affordability is always at the forefront of my thoughts when we’re considering any type of increase so that is something we will have to weigh heavily as we go through the process here,” said Williams. He encourages more customers to attend the next two public hearings:

Public hearings scheduled to dispute proposed Enbridge Gas Ohio bill hike - Akron Beacon Journal - Enbridge Gas Ohio has filed for an increase in its base rate natural gas charges for consumers in its Ohio service territory.If approved by the Public Utilities Commission of Ohio, a residential customer's total bill would raise by about 8.8% or $7.60, according to an Enbridge representative. The company has had significant increases in operation and maintenance costs, an Enbridge representative said in a statement late Monday, Aug. 3. Since 2007, it has invested more than $5.7 billion of capital in system infrastructure, and it has not yet recovered $1.1 billion of this in natural gas distribution rates. "We know affordability is important to our customers, which is why we’re committed to keeping costs fair and reasonable and believe every home deserves access to affordable energy," the representative said.The statement said Enbridge customers benefit from its "robust system," which includes abundant natural gas on its system from the Utica Basin supply, natural gas production receipt points, access to major interstate pipelines and over 60 Energy Choice program suppliers and supply offerings. Enbridge is also proposing changes to riders, additional charges on consumers' bills, according to a Ohio Consumers' Counsel news release.There are approximately 1.1 million Enbridge Gas Ohio residential utility consumers, the release said.The Ohio Consumers' Counsel has intervened in the case to represent the Ohio consumers.It is opposed to the increases in fixed charges because they must be paid every month, even if a consumer uses little or no gas, cannot be reduced by conserving energy and make up a larger share of total bills, the release said. Consumers can attend local public hearings to share their views directly with a Public Utilities Commission of Ohio commissioner. These officials will decide the case.

Ohio bill would let voters decide on every new data center project - Cleveland.com -- As Ohio communities increasingly turn to the ballot box to decide where data centers can be built, a pair of Republican lawmakers want to give voters the final say on every new project.“Citizens feel their voices are being ignored because city councils and local zoning boards are making decisions outside of the will of the people,” Rep. Jennifer Gross, a Butler County Republican, said. Her bill, House Bill 983, would require voter approval before local officials could approve permits or development agreements for new or expanded data centers.

Ohio data center bill would require voter approval, ban local tax incentives (WXIX) - State and federal lawmakers are moving to put guardrails on Ohio’s data center boom, introducing legislation that would require voter approval before large-scale facilities are built or expanded. Ohio ranks fifth in the nation for data center development, and the world’s largest data center is slated for Pike County. Now, both state and federal lawmakers say the growth is happening too fast and communities are not getting a say. Last week, two Republican state representatives introduced House Bill 983, the Data Center Accountability and Citizen Protection Act. Reps. Jennifer Gross and Michelle Teska are sponsoring the legislation. “The communities need the right and they should have the voice to be able to tell their elected officials and have a choice as to whether data centers come to their backyard,” Gross said. The bill would require voter approval before any large-scale data center is built or expanded. It would also ban future local tax incentives, force operators to generate their own electricity, and require full public disclosure of chemicals used in cooling systems. “Set standards for water qualities, so we know what the data centers are putting back into our water supply so we can protect our precious walleye and the people who fish them and it addresses NDAs,” Gross said. Federal legislation targets accountability and environmental impact On Capitol Hill, Democratic U.S. Rep. Greg Landsman has introduced three bills targeting data center accountability. “One forces the data centers to pay for everything. There’s no reason our taxpayers should pay for anything of this. They have so much money. The second is getting rid of these NDAs. Everything should be done publicly. And the third, this most recent bill, requires there to be a national standard in terms of the environmental impact,” Landsman said. Landsman’s federal push calls for oversight studying noise, air and water pollution, carbon emissions, and electronic waste. He said Southwest Ohio families deserve the information and the peace of mind.

Central Ohio communities set vote on data centers — The fate of data centers in two local communities is now in the hands of residents. Pataskala and Sunbury city councils approved ordinances to put a hyperscale data center ban on November ballots. “They just don’t belong near residents,” Pataskala resident Leatrice Guttentag said. Residents in both communities had to collect hundreds of signatures. “We have like a small town atmosphere and we feel like that would be ruined,” Sunbury resident Trey Dockendorf said. Guttentag and Dockendorf both live within a mile of proposed data centers in their towns. “Having something that big with that much noise pollution, all the electrical consumption and all the water consumption like we were just really concerned what that would do for the community,” Dockendorf said. They are both trying to amend their city charter amid uncertainty over how data centers would impact their communities. Pataskala and Sunbury voters will decide on a ban of data centers that use 25 megawatts of power a month. Buc-ee’s sues another small Ohio business over logo after John Oliver segment “It is the people deciding for ourselves what we want for our community as opposed to the government telling us what we need to do,” Guttentag said. They cited concerns over the environment, property values and higher electricity prices. According to the Ohio Consumers’ Counsel, a single hyperscale facility requires the same amount of power as 100,000 homes. “There are proper places for them, but right in the middle where there’s houses all over in the five-miles radius isn’t the proper place,” Guttentag said. Sunbury has a moratorium on data centers, but it’s still up in the air what this means for the proposed Pataskala project. City Administrator Tim Hickin said Pataskala City Council is still holding a public hearing on Aug. 25 about the possible center. “Obviously, that plan was submitted before the ban was proposed; city council will have to decide what they will do with that development,” Hicken said.

Cleveland moratorium to learn more about data centers — Lake Erie is a staple for northeast Ohio, and residents along with grassroots organizers like Laura Beans Sika, don’t want to see it taken for granted. “Water insecurity is a real, is a real concern for people,” Beans Sika said. “It’s a fear that is exacerbated by proposals to bring hyper-scale data centers to the City of Cleveland.” Laura is a part of the grassroots organization Conserve Ohio, which believe that hyper-scale data centers cannot be regulated safely. “Hyper-scale facilities, on average, used between 1 and 5 million gallons of fresh water a day to cool,” said Beans Sika. Conserve Ohio is calling for an amendment to the state constitution that would ban the construction of hyper-scale data centers, but they are not the only ones who see a need for some kind of regulation. Earlier this month, the City of Cleveland passed a three-month moratorium on hyper-scale data centers, legislation first proposed by Council member Charles Slife. “The Cleveland zoning code, which dates back almost 100 years, just doesn’t really have a hard, finite definition of what the type of data centers we’re seeing develop across the state, across the country are,” said Slife. The moratorium gives the city three months to learn more about data centers and determine where in Cleveland might have suitable land for a hyper-scale center. “Trying to understand there are places where a large-scale, hyper-data facility would be appropriate and, versus places where it would be intrusive or noisy or become challenging to the power grid,” Slife said. But some people say the potential expansion is a good thing. Baiju Shah, CEO of the Greater Cleveland Partnership, said that not bringing data centers to Cleveland would be a missed opportunity. “It is an anchor infrastructure for the economy that’s AI powered. And there are businesses that will choose to locate in geographies that have the infrastructure,” said Shah. He also said there are ways to help combat the impact on freshwater systems. “The data centers that are being built today, for example, use closed looped cooling systems. That means they’re

What we learned about Ohio data-center projects that could face Amy Acton’s proposed moratorium - cleveland.com — Amy Acton’s proposed restrictions on new data centers could reach projects at sharply different stages, from a Perry Village campus without a site plan to Meta’s $800 million Wood County facility already under construction. The Democratic candidate for governor would allow new projects only on brownfields or previously developed industrial sites and require them to cover all electricity, gas and water costs, use union labor, disclose information to communities and meet environmental standards. But she has not defined “new,” set an effective date or identified when a project would be exempt. Those questions could affect billions of dollars in development. Ohio has more than 200 data centers, and companies plan to invest up to $40 billion more through 2030. These are five takeaways from the original article, which examined Acton’s proposal.

1. Perry Village’s preliminary project appears the most exposed Province Group is proposing six 250,000-square-foot buildings on more than 200 acres at the former Champion Farm nursery property. Mayor James Gessic told News 5 Cleveland in April that the village had not received a site plan and construction was at least two years away. The land was used as a nursery, not an industrial site, although Acton’s proposal does not define “previously developed industrial site.” Land-purchase agreements are in place, but the proposal does not say whether they would protect the project from later restrictions.
2. Cleveland’s rejected application must clear local rules first Lakeland Equity Group proposed a $1.6 billion hyperscale data center on a 35-acre former truck yard in Slavic Village. Cleveland rejected the permit application May 14 after it failed an initial zoning review. City Council later approved a three-month moratorium on new stand-alone data centers and expansions. The pause runs through Oct. 16 while the city studies possible effects on neighborhoods, infrastructure and natural resources. The property is previously developed, but the project needs a new application. Acton’s proposal does not explain how statewide restrictions would interact with local rules.
3. Piqua’s signed agreements do not guarantee an exemption J5 LLC, operating as Shaytura LLC, is developing a two-building campus in the Piqua Interstate 75 Business and Industrial Park. Piqua approved development, utility and tax-increment financing agreements in November 2025. The city and developer executed them Jan. 23, and Piqua describes the project as approved and underway. The developer must pay applicable utility rates and infrastructure costs. Piqua also signed a nondisclosure agreement covering proprietary negotiations. Whether those commitments meet Acton’s cost and transparency standards would depend on legislation and any protection for existing contracts.
4. Meta’s construction raises the question of retroactive rules Meta announced its 715,000-square-foot Wood County data center in April 2025. Construction had begun on the 280-acre Middleton Township site when JobsOhio announced the more than $800 million investment. Acton’s plan does not say whether projects already under construction would be exempt. JobsOhio’s announcement also did not establish that all construction labor would be union or that the property qualifies as a previously developed industrial site.
5. The federal Piketon campus already meets several conditions . The U.S. Department of Energy is leasing former uranium-enrichment land in Pike County to an SB Energy affiliate for a major data-center campus. The department says SB Energy will fund accelerated cleanup and $4.2 billion in transmission improvements. It projected more than 10,000 construction jobs using union and skilled-trade workers, although it did not say every worker would be a union member. The project uses former industrial land and includes major infrastructure commitments. Acton’s plan does not address whether Ohio could impose restrictions on a development built partly on federal property.

Tech giants eye $500 billion investment in enormous southern Ohio data center | NBC4 WCMH-TV — Tech companies are considering leasing the world’s largest data center, a $500 billion investment in southern Ohio.First reported by the Wall Street Journal, chipmaker Nvidia is in talks to invest $250 billion with OpenAI to lease an enormous data center being built on federal land in Pike County. If the deal goes through, Nvidia and OpenAI would pay $500 billion to the Department of Energy and SoftBank for access to the 10-gigawatt project.The DOE and SB Energy, a SoftBank subsidiary, announced they would build the world’s largest AI data center at the former site of America’s first uranium enrichment plant, PORTS. The former nuclear plant is being revitalized through a private-public partnership to create the world’s first 10-gigawatt data center. See previous coverage of PORTS in the video player above.A gigawatt is a unit of power, and the world’s current largest data center campus is a cluster of different data centers in China that supports 3 gigawatts. Carbon Collective estimates one gigawatt — 1,000 megawatts — could power approximately 876,000 households for a year. At 10 gigawatts, the AI data center will be the largest-capacity in the world. Most data centers require massive amounts of energy, which can often be passed on to consumers. In Pike County, the DOE and other private companies also committed to generating nuclear and natural gas energy to power large data centers so that costs won’t be passed onto Ohioans.The energy is jointly controlled by SoftBank, AEP Ohio, the DOE and the government of Japan. In trade negotiations, Japan agreed to fund $33.3 billion for 9.2 gigawatts of natural gas generation.According to reports, details of the $500 billion deal are still being finalized between OpenAI and Nvidia. SoftBank is a longtime investor and partner of OpenAI.President Donald Trump announced this week that the federal government will also build a 2-gigawatt AI data center at the site of the former Paducah nuclear campus in Kentucky. The DOE said the Kentucky project builds on the partnership model first introduced at PORTS. The DOE said the data center will be completed by 2028. Ohio does not have to wait two years to have the largest capacity data center in the world; Meta expects to open the first one-gigawatt data center in New Albany later this year.

Ascent Pumps 2.19 Bcfe/d, Doubles Down on Buying Ohio Utica Land - Marcellus Drilling News - Ascent Resources — one of the largest privately held oil and gas producers in the U.S. and the biggest gas driller in Ohio's Utica Shale — issued its second quarter 2026 results on Wednesday. Ascent flowed 2,194 MMcfe/d (2.19 Bcfe/d) and booked a $303 million profit. But the real story for MDN readers isn't the profit line. It's what Ascent did with its checkbook: a leasing spree that nearly quadrupled land spending year over year, and a July deal that hands back a quarter-Bcf/d of long-haul pipeline space.

Dell’Osso’s First Quarter at Gulfport: Buy More Utica, Rethink Okla. -- Marcellus Drilling News -- Gulfport Energy dropped its second quarter 2026 numbers on Monday (Aug. 3), followed by an analyst call Tuesday morning — the first for new President and CEO Nick Dell’Osso, who took the chair May 28 after running Chesapeake/Expand Energy for five years. The profit line went the wrong direction. But strip away the accountants’ noise, and there’s a genuinely good story here for Ohio landowners, for the service companies that turn dirt, and for anyone holding the stock.

Williams ESG Report: Utica Power Plants, NESE, 7.3 Bcf/d of Pipe - Marcellus Drilling News -- Let’s be honest — corporate “sustainability reports” are usually 100+ pages of stock photography, buzzwords, and pie charts about employee engagement. We normally give them a wide berth. But Williams released its 2025 Sustainability Report on July 29, and this one is different. Underneath the ESG wrapping paper is a straight-up growth story, and a surprising amount of it runs directly through the Marcellus and Utica. If you’re a landowner in Licking County, a driller in the Utica dry gas window, or anyone who owns WMB shares, there’s real news here.

EOG’s Utica Program Hits Its Stride in Record 2Q26 - Marcellus Drilling News -- Houston-based EOG Resources posted record second-quarter 2026 results on August 4th, and buried inside the good news for shareholders is an even better story for Ohio landowners and the Utica supply chain: the former Encino Energy assets EOG bought a year ago are now outperforming the company’s own pre-acquisition playbook. EOG’s CEO called the deal a “home run” on the August 5th earnings call, and the numbers back him up — well costs down 20% from where Encino left them, drilling and completion speeds up double digits, and activity levels more than tripled versus pre-acquisition rates. Company-wide, EOG posted $2.7 billion in adjusted net income ($5.07/share), $2.8 billion of free cash flow, and record oil volumes of 548.8 MBod. Full detail below, with the Utica numbers front and center.

Case Closed: EOG Settles w/ Ohio Landowner Who Stopped Its Wells - Marcellus Drilling News - EOG Resources has settled — and apparently bought out — the Noble County, Ohio landowner who beat it at the Sixth Circuit Court of Appeals last year in a fight over whether a driller can use one owner’s surface to drill horizontally into the neighbors’ minerals. The case, EOG Resources, Inc. v. Lucky Land Management, LLC, produced a published appellate ruling that’s now a go-to precedent on surface rights for horizontal (lateral) drilling anywhere severed mineral estates exist — which describes most of the Marcellus/Utica. MDN first flagged this case a year ago when we caught the 6th Circuit’s reversal (see below) but couldn’t pin down the county or the full backstory (see 6th Circuit Reverses Lower Court, Blocks EOG from Surface Drilling). We now have it, and it’s a heck of a story.

OH Landowner Accuses EOG of “Theft” — Real Story is Lease Assignment -- Marcellus Drilling News -- A Harrison County landowner and longtime pro-drilling voice is now accusing EOG Resources of “theft” — and while the word grabs headlines, the underlying dispute is a lot more nuanced than one company stealing one man’s mineral rights. A recent report from Your Ohio News lays out landowner Ron Ott’s grievances against EOG, but bundles together at least four separate issues into one story. We think MDN readers deserve the untangled version.

New Owners for Eureka’s 3 PA Wastewater Plants; Waste Still On Site - Marcellus Drilling News -The long, sad saga of Eureka Resources has a new chapter — and for once, it’s not another fine or another leak. Eureka has sold the business operations at all three of its shuttered Pennsylvania frack wastewater treatment plants. Two of the three went to Select Water Solutions, one of the biggest water-management companies in the oilfield. The third went to a Washington County trucking outfit. We didn’t hear this from Eureka. We heard it from the Middle Susquehanna Riverkeeper Association, which pried the details out of the PA Department of Environmental Protection (DEP) in advance of the one-year anniversary of the Aug. 17, 2025 spill that dumped 16,000 gallons of untreated wastewater into the West Branch of the Susquehanna River (see ‘Black Goop’ Spills into Susquehanna River from Closed Eureka Plant). Read More

AG Sunday Hits Eureka with 16 More Crimes for Williamsport Spill - Marcellus Drilling News -- Two months ago, we told you PA Attorney General Dave Sunday had charged Eureka Resources with seven crimes over years of leaking tanks at its Standing Stone plant in Bradford County (see Eureka Resources Charged with 7 Crimes for PA Wastewater Leaks). That was the appetizer. Sunday has now filed a second, separate criminal case against the defunct wastewater company — this one aimed squarely at the Aug. 17, 2025 spill that sent 16,000 gallons of oily frack waste out of the Williamsport Second Street plant and into the West Branch of the Susquehanna River. Sixteen counts this time. And for the first time, Eureka is charged under laws that protect water, not just laws that govern waste.

PA Antis Continue to Push Frack Ban Via Insane Setback Rules -- Every so often the antis tell you exactly what they’re up to, and you just have to sit back and enjoy it. On Saturday, Inside Climate News ran a story on the ongoing campaign by the Environmental Integrity Project (EIP), Clean Air Council, and their friends to jack up setbacks — the required distance between a well pad and the nearest building — from the current 500 feet to distances that would end new shale drilling in Pennsylvania. The new twist? They’ve hitched the campaign to the data center boom. More data centers means more gas, and more gas means (in their telling) more danger, so hurry up and pass the rules. It’s the same petition MDN has been tracking since 2024, dressed in a 2026 outfit.

15 New Shale Well Permits Reported for PA-OH-WV Jul 27 - Aug 2 - Marcellus Drilling News - The Marcellus/Utica region received (as near as we can tell) 15 new drilling permits last week, July 27 - August 2, down 4 from two weeks ago. The reason for our hesitation is that the Ohio Department of Natural Resources didn't issue a report for last week. They sometimes are tardy in their report filing, catching it up in the next week's report. The drillers who received new permits included: Seneca Resources (6), Expand Energy (6), JKLM Energy (2), and Jay-Bee Oil & Gas (1). Bradford County | Expand Energy | Jay-Bee Oil & Gas | JKLM Energy | Pleasants County | Seneca Resources | Tioga County (PA) | Wetzel County

2 Lawsuits in 6 Days: Big Green Targets the Permit Behind Every Pipe - Marcellus Drilling News --Two federal lawsuits landed in the same Washington, D.C. courthouse six days apart last month, and while both are nominally about pipelines in Mississippi and Alabama, Marcellus and Utica readers should pay close attention. Not because of where the pipe goes — but because of which pipelines the greens dragged into their complaints as Exhibit A.

Back from the Dead: Mon County, WV Gas Plant Project Sold to AEP - - Marcellus Drilling News - Back in January 2022, we brought you what looked like a milestone: the WV Dept. of Environmental Protection had issued a construction permit for a big Marcellus gas-fired power plant next door to the Longview coal plant in Maidsville, Monongalia County (see WV DEP Approves Construction Permit for Gas-Fired Elec Plant). We said it would finally be the first large-scale gas plant built in the Mountain State during the shale era. We were wrong. Not one shovel of dirt got turned.

TC Energy: Two More Columbia Expansions + Bigger Bet on M-U Supply - Marcellus Drilling News - TC Energy issued its second quarter 2026 update on July 30, and the headline numbers were strong: comparable EBITDA of C$2.9 billion, up 12% over 2Q25, and full-year guidance now tracking the upper end of the C$11.6–$11.8 billion range. Nice, but that’s investor stuff. The news that matters for Marcellus/Utica landowners, drillers, and midstreamers is sitting in the project tables — and in a demand forecast TC has now raised two years running.

Enbridge: Beacon Open Season Swamped, More M-U Gas Headed to Boston - Marcellus Drilling News - Enbridge reported second quarter results on Friday, July 31, and buried in a Canadian midstream giant’s quarterly slide deck — a document that is 90% oil sands, Permian, and balance sheet talk — is the best piece of news Appalachian producers have gotten out of New England in fifteen years. Project Beacon, Enbridge’s proposed expansion of the Algonquin Gas Transmission (AGT) system into New England, ran a binding open season from May 18 to July 1. An open season is simply a pipeline asking shippers to raise their hands and commit, in writing, to buy capacity. CEO Greg Ebel told analysts the response “significantly exceeded our initial expectations.” Matthew Akman, who runs Enbridge’s gas transmission business, said Beacon would be “multiple times” the size of the AGT Enhancement project already underway, and that a big enough Beacon could save New England utility customers more than $1 billion a year.

Massive Winter Premiums Show Northeast Pipeline Expansion Remains Insufficient - Despite a resurgence of infrastructure development across parts of the Northeast, the region is likely to face another winter of severe natural gas price volatility as peak demand continues to outpace available pipeline capacity. A Line chart titled "NGI's Northeast Regional Key Forward Basis Curves" comparing forward natural gas basis prices for Algonquin Citygate, Iroquois Zone 2 and Transco Zone 6 NY from July 2026 through August 2028. All three Northeast pricing hubs show pronounced winter premiums, with the largest spike occurring in December 2026-January 2027, when Algonquin Citygate and Iroquois Zone 2 approach $17.50/MMBtu, while Transco Zone 6 NY peaks near $7.50/MMBtu. A second, smaller winter rally appears in December 2027-January 2028, with Algonquin and Iroquois reaching roughly $11/MMBtu and Transco Zone 6 NY climbing to about $6.50/MMBtu. Basis values remain near or below zero through the spring, summer and early fall, illustrating the Northeast natural gas market's strong seasonal winter demand and pipeline constraint-driven pricing. Source: NGI's Forward. At a Glance:
Northeast winter premiums dwarf other indexes
Regional demand growing
Price spikes could intensify

$18 Gas in Boston, $5 Gas Everywhere Else. Any Guesses Why? - - Marcellus Drilling News - Want to know what the smartest money in the natural gas business expects to happen in the Northeast this winter? Don’t ask a politician. Look at the forward curve. As of the first of August, traders were pricing December-through-February gas at Algonquin Citygate (the Boston benchmark), Iroquois Zone 2 in New York, and three Tennessee Gas Zone 6 points in New England above $18 per MMBtu. At the other 77 pricing hubs Natural Gas Intelligence tracks across the U.S. and Canada, that same three-month strip averages under $5. Read that again. Same country. Same historically abundant supply. Roughly four times the price.

TVA Fires Up 1,450 MW Cumberland Plant, Locks In Nearly 1 Tcf of Gas - Marcellus Drilling News -- The Tennessee Valley Authority (TVA) posted its third-quarter fiscal 2026 results yesterday (Aug. 4) — a press release, an investor presentation, and a 10-Q filed with the Securities and Exchange Commission. The headline numbers are fine but boring: $10 billion in revenue over nine months, net income of $965 million, up $220 million from last year. Yawn. However, if you dig into the 10-Q, there’s real news for Marcellus/Utica producers. TVA’s giant new Cumberland gas plant has fired up for the first time. TVA borrowed $2 billion to pay for it — the largest such financing in the agency’s history. And TVA has quietly expanded its natural gas hedge book to nearly 1 trillion cubic feet. Let’s dig in

Duke’s Carolinas Gas Fleet Grows; Transco, Southgate Will Feed It - Marcellus Drilling News - Duke Energy reported second quarter 2026 results Tuesday, and while the earnings themselves are fine-but-boring utility fare, buried in the slide deck is one of the better demand stories going for Marcellus/Utica producers: Duke now has 6,025 megawatts (MW) of new gas-fired generation sited in North and South Carolina, every announced plant has its gas supply under contract, and the two pipelines that will carry most of those molecules south both trace back to Appalachia.

FERC approves $5-B Kinder Morgan pipeline expansion to boost Southeast gas supply Federal regulators have given the green light to two major natural gas pipeline projects backed by Kinder Morgan, clearing the way for roughly $5.2 B in new energy infrastructure stretching from Mississippi to Georgia and South Carolina. Federal regulators have given the green light to two major natural gas pipeline projects backed by Kinder Morgan, clearing the way for roughly $5.2 billion in new energy infrastructure stretching from Mississippi to Georgia and South Carolina. The Federal Energy Regulatory Commission (FERC) issued an order on July 31 approving certificates of public convenience and necessity for the Mississippi Crossing Project (MSX), proposed by Tennessee Gas Pipeline Company, and the South System Expansion 4 Project (SSE4), jointly proposed by Southern Natural Gas Company and Elba Express Company. All three companies are affiliated with Kinder Morgan, one of the largest energy infrastructure operators in North America. Together, the two projects will add more than 3.8 million dekatherms per day of incremental firm transportation capacity, creating a new pathway for gas to move from an interconnection with Tennessee Gas' existing Line 100 in Washington County, Mississippi, to delivery points across the southeastern U.S. The MSX Project alone calls for roughly 208 miles of new pipeline and lateral facilities in Mississippi and Alabama, three new compressor stations, four new meter stations and other supporting facilities, at an estimated cost of about $1.7 billion. It is designed to deliver 2.06 million dekatherms per day. The SSE4 Project would expand Southern's existing South Main Line system with 22 pipeline loops totaling roughly 291 miles across Mississippi, Alabama and Georgia, along with new and upgraded compressor stations, at an estimated cost of about $3.3 billion. Elba Express, whose system runs through Georgia and South Carolina, would add two new compressor units and a meter station at a cost of about $160 million. Combined, the SSE4 facilities will provide roughly 1.323 million dekatherms per day of new capacity on Southern's system and 460,300 dekatherms per day on Elba Express' system. Tennessee Gas has signed long-term precedent agreements covering about 93% of the MSX Project's capacity, while Southern and Elba Express have contracted out 100% of the capacity created by SSE4. Shippers include utilities and cooperatives such as the Tennessee Valley Authority, Oglethorpe Power Corporation, Dominion Energy South Carolina, Southern Company Services, Atlanta Gas Light Company and South Carolina Public Service Authority (Santee Cooper). FERC found that the volume of signed, long-term transportation contracts — the standard the agency has long relied on to demonstrate market need — provided sufficient evidence that the projects are needed, noting that interstate pipelines serving the Southeast are operating near or above peak capacity. The approval came over the objections of the Sierra Club, the Alabama Rivers Alliance and several other environmental and community groups, which argued that a large share of the contracted capacity involves Kinder Morgan affiliates and related companies, and that projected demand — particularly from data centers — is speculative. The groups also sought an evidentiary hearing and asked the Commission to delay its decision to consider additional market studies. FERC denied the request for a hearing, saying the written record was sufficient to resolve the disputed issues, and found no evidence of self-dealing between the pipeline companies and their affiliated shippers that would justify looking beyond the signed contracts.

US LNG Exports Tread Water in July as Europe Reclaims Market Share -A look at the global natural gas and LNG markets by the numbers. NGI LNG Export Flow Tracker shows daily US LNG feed gas deliveries by export terminal and total North America LNG flows as of Aug. 5, 2026.

10.26 Mt: US LNG exports held roughly flat in July at about 10.26 Mt, slightly up from June but 2.4% below the 10.51 Mt monthly average during the first half of the year, according to Kpler data. Europe drove the marginal upside, with deliveries rising 12.6% to 4.15 Mt from June, the continent's first monthly gain since March. Shipments to Asia eased to about 3.88 Mt, while Africa fell to 1.32 Mt from 1.75 Mt after June’s Egypt-led surge. Volumes to the Americas climbed for a fourth consecutive month to 0.92 Mt, the strongest month in two years. US exports to the region were led by Chile and Brazil. Roughly 1.32 Mt of July volumes remain unassigned at the country level, which could shift the final destination split.
124%: US LNG exports to China rose 124% in July to about 0.16 Mt from 0.07 Mt in June, the highest monthly total since November 2024, according to Kpler data. The two consecutive months of deliveries end a 17-month gap in which no US volumes reached China between January 2025 and May. Chinese re-exports also strengthened, climbing to about 0.29 Mt in July from 0.05 Mt in June.
17.88 Bcf/d: US LNG feedgas nominations rebounded for a second straight day Wednesday to their highest level since July 26. Flows totaled about 17.88 Bcf/d, according to NGI’s Entropic Analytics data, up roughly 350 MMcf/d day/day. The day's expected nominations were only about 60 MMcf/d above a week earlier, and the seven-day average slipped to 17.50 Bcf/d from 17.93 Bcf/d the previous Wednesday. Nominations bottomed at 16.94 Bcf/d Saturday, the weakest gas day since mid-July.
2.63 Bcf/d: Corpus Christi LNG feedgas nominations climbed to a five-week high Wednesday as commissioning advances on the final unit of Cheniere Energy's Stage 3 expansion. Flows to the terminal totaled about 2.63 Bcf/d, according to Entropic Analytics data, the most since June 30. Nominations averaged 2.41 Bcf/d over the past seven days, down 4.8% from the prior week after dipping to 1.86 Bcf/d Saturday. The Federal Energy Regulatory Commission authorized Cheniere on July 28 to introduce feed gas to the warm end of Midscale Train 7, which is expected to add roughly 200 MMcf/d of feedgas demand once fully operational. That leaves about 123 MMcf/d of unsubscribed room at the pipeline’s delivery point.

Port Arthur Builds Toward Startup While ECA Waits on Compressor Fix - Sempra Infrastructure is moving Port Arthur LNG deeper into commissioning, bringing the Texas export project closer to the point when it could add an additional layer of feedgas demand to the Gulf Coast market. At a Glance:

Commissioning milestones building
Feedgas adds new Gulf Coast demand
ECA completion slips to 4Q2026

NextDecade Sees Hormuz Disruption Tightening LNG Supply Through 2030 -- The prolonged closure of the Strait of Hormuz shifted the outlook of the global LNG market, keeping spot prices elevated through the end of the decade, NextDecade CEO Matt Schatzman told analysts. At a Glance:

Global spot prices stay elevated longer
Henry Hub comparatively subdued
Rio Grande LNG interest still rising

Coastal Bend LNG Takes Crucial Early Step, Enters Federal Regulatory Process The Coastal Bend LNG project in Texas has entered the Federal Energy Regulatory Commission (FERC) process, announcing this week that it has started the pre-filing review phase and expects to file a formal application with the Commission next year. IEA chart shows global LNG project final investment decisions by region from 2015 through 2026, highlighting North America, the Middle East and Africa. At a Glance:
- Project starts pre-filing phase
- Formal application targeted for 2027
- 2 other greenfields under FERC review

Cheniere Nears Completion of Corpus Christi Stage 3 LNG Expansion – Cheniere Energy CEO Jack Fusco said Thursday that the seventh and final liquefaction train at the company’s Corpus Christi Stage 3 expansion project is expected to produce its first LNG “imminently.” At a Glance:

7th train nears first LNG
CCL Midscale project 48% complete
Company on track for 100 Mt/y output

Cheniere Energy reports rise in second-quarter profit on increased LNG demand -. Cheniere Energy reported a rise in second-quarter profit, helped by increased demand for liquefied natural gas (LNG), sending its shares up 2% in premarket trading. The U.S. is the world's largest exporter of LNG, shipping 15 billion cubic feet per day (Bft3d) of the supercooled fuel in 2025, according to the U.S. Energy Information Administration, up 26% from 2024. Commercial activity in the LNG sector has gained further momentum after U.S. President Donald Trump lifted a moratorium on new LNG export permits after taking office last year. The company's LNG revenue was at $5.64 billion in the quarter, compared with $4.52 billion a year earlier, while regasification revenues remained flat at $34 million. The Houston, Texas-based company posted a net income of $3.07 billion for the quarter ended June 30, compared with $1.63 billion in the previous year.

How Are Geopolitics and LNG Feedgas Demand Reshaping North American Natural Gas? - Click here to listen to the latest episode of the Hub & Flow podcast in which NGI’s Jacob Dick, senior editor for LNG, breaks down the global supply environment currently reshaping US LNG demand. The global natural gas landscape finds itself at a critical crossroads: geopolitical instability in the Middle East continues to squeeze international trade routes, while North American export capacity rapidly expands to meet shifting demand. As global markets balance supply security against long-term climate targets, the interplay between Gulf Coast feedgas fluctuations and Canadian export momentum is redefining the future of natural gas flows.In this episode of NGI’s Hub & Flow, host Chris Lenton sits down with Dick to analyze the latest structural shifts across the North American LNG space. The conversation explores how ongoing disruptions near the Strait of Hormuz are reshaping international cargo flows, the operational reliability of key Gulf Coast facilities, such as Freeport and Golden Pass, and the accelerating momentum behind Western Canadian export projects — including LNG Canada and emerging Atlantic initiatives — as the market looks toward the next wave of global supply.

U.S. Energy Helps Cushion Global Supply Shock From Hormuz - The U.S. energy system has helped mitigate the shock loss of oil and LNG supply from the Middle East when the Strait of Hormuz closed to traffic and sent refiners and gas importers worldwide scrambling for alternative supply.The record American crude oil production and huge natural gas production and rising LNG exports were decades in the making, during which companies invested billions of dollars every year to increase oil, natural gas, and fuel supply, the American Petroleum Institute (API) said in an analysis this week.But the role of “the world’s energy stabilizer”, as API put it in its article, comes at a cost for the U.S. energy system. America’s inventories of crude oil and petroleum products have slumped below the five-year average for this time of year, leaving narrow margins of error in the production, refining, and export systems.The disruption caused by the Iran war hasn’t gone away, but the record U.S. oil output and fuel exports have kept crude oil prices in check for most of the past five months, alongside perpetual market hopes that a resolution of the conflict is imminent.“Markets remain tight, inventories are low and uncertainty around the Strait of Hormuz and other key shipping lanes persists. Yet, America's energy system has helped cushion what could have been a much more severe shock,” API said. Since the shale revolution began, the U.S. oil and natural gas industry has invested about $150 billion every year in oil and natural gas upstream production alone, according to API’s estimates. Those investments, adding to billions more poured in pipelines, export terminals, and other critical infrastructure, fundamentally changed America’s role in global energy markets, the oil lobby says.The U.S. role has indeed changed, with record crude oil production and exports, and record exports of fuels in recent months as the world is reeling from the crisis triggered by the war in Iran and the closure of the Strait of Hormuz.The record-high exports are naturally depleting U.S. inventories even as refineries run at very high utilization rates. This tightens the domestic market, leaving it vulnerable to a sudden supply disruption from a hurricane or a refinery stoppage. Middle distillate inventories in the United States are now 12% below the five-year average, according to the latest EIA petroleum status report. Domestic gasoline and diesel prices are much higher than they were before the war. Due to the crude price surge on international markets, the national average gasoline price is now $4 per gallon, about $1 higher than at the end of February before the U.S. and Israel started bombing Iran and nearly $0.90 higher than at this time last year.The path to a permanent de-escalation in the Middle East remains unclear, and the U.S. crude oil and fuel producing system will continue to offset some – but not all – supply from the Middle East that’s not making it to buyers these days.The role of U.S. oil and gas production in helping stabilize global energy supply has been decades in the making, with continued investments in supply and infrastructure to bring this supply to markets.

Michigan Supreme Court strikes down Line 5 permit - Michigan’s highest court has ordered state energy regulators to redo their environmental review of Enbridge’s Line 5 tunnel project beneath the Straits of Mackinac. The Michigan Supreme Court’s Friday ruling marks a major setback for the project, which saw a burst of momentum in July when Democratic Gov. Gretchen Whitmer’s administration issued key permits for construction. Enbridge plans to replace a four-mile dual pipeline segment on the bottom of the straits with a single pipeline encased in a cement tunnel beneath the lake bed. The proposed 21-foot-diameter tunnel is meant to address long-standing concerns that the existing aging pipes are at risk of spilling oil into the Great Lakes. In a 6-1 decision, the state Supreme Court tossed out the Michigan Public Service Commission’s order approving the project.

Michigan Supreme Court vacates key Line 5 permit - The Michigan Supreme Court on Friday ruled that the Michigan Public Service Commission erred when it granted a key permit for the Line 5 petroleum pipeline tunnel under the Straits of Mackinac. Among other findings in its 58-page ruling, the majority found the commission’s permit review was overly narrow, failed to consider whether the tunnel project would harm public rights to the Great Lakes, and failed to study whether Line 5 would shut down if the tunnel isn’t built. “To accurately assess the environmental consequences of the Replacement Project, the PSC should have determined whether the project would be the proximate cause of Line 5’s continued operation and its alleged attendant harms,” stated a majority opinion written by Justice Elizabeth Welch. The 6-1 decision sends the matter back to the commission with an order to “fully assess the Replacement Project’s potential harms.” Justice Brian Zahra agreed that commissioners failed to consider impacts on public use rights in the Great Lakes, but disagreed with the rest of the majority opinion. Friday’s ruling represents a victory for Line 5 foes who have argued the tunnel would harm the environment by locking in decades of continued fossil fuel transports along a 73-year-old pipeline that would otherwise soon shut down. And it further clouds the fate of the proposed tunnel project, which has been in limbo since it was first proposed eight years ago in response to growing concern that Line 5 could cause a catastrophic oil spill in the Great Lakes. “Today is a reminder that when people stand together with courage and conviction, change is possible,” Bay Mills Indian Community President Whitney Gravelle said in a written statement. Gravelle’s tribe challenged the permit along with the Little Traverse Bay Bands of Odawa Indians, Grand Traverse Band of Ottawa and Chippewa Indians, and Nottawaseppi Huron Band of the Potawatomi. “For years, Tribal Nations, communities, and thousands of people across the country have raised their voices to protect the Great Lakes,” Gravelle said. “This decision gives us another opportunity to honor our treaty rights, protect our waters, and consider the generations who will inherit this place.” Enbridge spokesperson Ryan Duffy expressed disappointment with the decision and said the company is assessing its legal options. “One thing remains unchanged, we are fully committed to the safe and responsible operation of Line 5, incorporating enhanced safety measures in the Straits and continuing to safeguard Michigan’s natural resources now and for future generations,” Duffy said in a statement to Bridge Michigan. The ruling stems from the Public Service Commission’s December 2023 approval of a key permit for the proposed tunnel, which would reroute a 4-mile segment of the 645-mile pipeline that currently sits exposed on the lakebottom as it transports petroleum products from Superior, Wisconsin to Sarnia, Ontario. A coalition of four Michigan tribal nations, the Environmental Law & Policy Center, Michigan Climate Action Network and Traverse City-based environmental group FLOW (For Love of Water) challenged the approval, arguing the commission’s analysis was flawed and the pipeline should be shut down rather than merely rerouted. The issue reached the state Supreme Court after the Michigan Court of Appeals sided with the state. In March arguments before the high court, an attorney for environmental groups challenging the permit argued the decision had been based on “a lopsided analysis that needs to be corrected.” Enbridge lawyers argued the commission had correctly determined that building the tunnel is the best way to avoid a spill — a conclusion that rested in part on the belief that Enbridge had the legal right to keep operating Line 5. In their ruling Friday, the court’s majority rejected that logic. “Line 5’s continued operation, with and without the Replacement project, was a factual question, not just a legal one,” they wrote. The justices also found that, when analyzing possible alternatives to the tunnel project — a required step in the permitting process — commissioners applied their analysis inconsistently. For example, they took a narrow view of the oil spill risks caused by transporting Line 5’s products, considering the possibility of spills only in the Straits rather than along the length of the pipeline (which has repeatedly caused inland spills). They then took a broad view of spill risks from tunnel alternatives such as rail transport, assessing risks along the entire length of the hypothetical rail route. Such inconsistencies amounted to “errors that did not allow for a reasoned choice among the alternatives,” Welch wrote. Finally, the majority concluded, the commission failed to consider “whether the Replacement Project would pollute, impair, or destroy public trust resources.” Michigan’s public trust doctrine says the state holds resources like the Great Lakes and bottomlands in trust for the people.

Ruling puts Line 5 project on hold, but for how long? - The Michigan Supreme Court’s decision to invalidate a permit required for improving the Line 5 oil and gas pipeline’s safety is raising a lot of questions. But it is unlikely to have any immediate effect on gasoline and other fuel prices, at least in the short term. Scott Hayes, Midwest government relations director for PBF Energy/Toledo Refining Co., said it’s important for people to know it’s business as usual. The ruling did not shut down the 645-mile pipeline, nor did it change any conclusions made previously about Line 5’s safety by the U.S. Pipeline and Hazardous Materials Safety Administration, or PHMSA, Mr. Hayes said. Line 5’s owner-operator, Enbridge, will continue to deliver petroleum and natural gas liquids to refineries for the foreseeable future, including the one PBF operates on Woodville Road in Oregon, he said. The PBF Toledo refinery employs about 350 members of United Steelworkers Local 912. The issue at hand is the pipeline’s future. Under a deal arranged with former Michigan Gov. Rick Snyder, Enbridge agreed in 2018 to do a major upgrade to Line 5, which was built in 1953. Its plan is to build a tunnel, called the Great Lakes Tunnel, beneath the Straits of Mackinac so it can encase Line 5 and have better surveillance of it. Line 5 traverses parts of Canada before entering Michigan’s Upper Peninsula. It crosses Lake Michigan, west of the Mackinac Bridge. Those opposed to it, including Michigan Gov. Gretchen Whitmer, have said the 73-year-old pipeline is unsafe not only because of its age but also because it is situated above the lakebed. The issue surfaced earlier in 2018, when a boat anchor dented but did not rupture it. Mr. Hayes said he’s satisfied with PHMSA’s safety assessment. But he supports construction of the Great Lakes Tunnel as an added security measure to ensure the pipeline remains safe to operate for several more decades. “What this seems to do is slow down an already-safe pipeline from becoming even safer,” Mr. Hayes said of the ruling. The decision invalidates a permit the Michigan Public Service Commission issued to Enbridge in 2023 to move the Great Lakes Tunnel project forward. The permit was challenged by For Love of Water, a group known as FLOW. It was joined by other environmental groups, as well as some Native American tribes. FLOW called the Michigan Supreme Court ruling “a major victory.” The case has been remanded to the commission for further consideration. It is not known how many months or possibly years that will delay construction. “This will drive up fuel prices for people in Ohio and it’s unacceptable,” U.S. Sen. Jon Husted (R., Ohio) said in a prepared statement but would not say why. Mr. Husted expressed support for the tunnel project when he served as Ohio’s lieutenant governor under Gov. Mike DeWine. The governor’s office did not respond to a request for comment about the ruling. Other Ohio politicians who support the Great Lakes Tunnel include U.S. Rep. Bob Latta (R., Bowling Green), who said he is concerned about how long the ruling will delay the project. “This pipeline is a critical piece of energy infrastructure that safely transports up to 540,000 barrels of crude oil and natural gas liquids every day, supplying refineries and consumers throughout Michigan, Ohio, and the entire Great Lakes region,” Mr. Latta said. “A potential shutdown of Line 5 would put tens of thousands of jobs at risk, jeopardize billions of dollars in economic activity, and create unnecessary uncertainty in the delivery of energy products families and businesses rely on every day.” He said pipelines “remain the safest and most efficient way to transport energy,” and urges the Michigan Public Service Commission to swiftly respond to the court’s directive.

BLM approves temporary water pipeline for Koda Uinta operations in Uintah County -- The Bureau of Land Management's (BLM's) Vernal Field Office has approved a temporary water pipeline project that will support well completion (ie,fracking) operations for Koda Uinta, LLC across fourteen sites in the Wonsits Valley area of Uintah County. The decision, issued under Categorical Exclusion documentation numbered DOI-BLM-UT-G010-2026-0093-CE, authorizes an amendment to right-of-way UTU94510, which is held by Koda Uinta. The amendment clears the way for installation of temporary surface lay-flat waterlines, a flexible, above-ground piping system commonly used in oil and gas operations to move water where it's needed without the cost or disturbance of permanent infrastructure. The lay-flat lines will run through the borrow ditch alongside a 0.7-mile stretch of Harmston's Hole, an existing road claimed by Uintah County. The route is located in Section 4, Township 8 South, Range 21 East, Salt Lake Base and Meridian. Because the pipeline crosses Tribal Trust surface estate, the BLM emphasized that its decision authority is limited strictly to land under its own administration — a distinction that matters given the layered jurisdictions in the area. The agency's approval doesn't extend to surface rights or activities beyond its regulatory reach. The project is intended to be temporary, supporting the water transfer needs of completion operations rather than serving as permanent utility infrastructure. Once that work concludes, the lay-flat lines are expected to be removed. Full details of the decision record are available through the BLM's ePlanning portal. Questions about the project can be directed to the Vernal Field Office at 435-781-4400. The pipeline approval was one of several BLM Vernal Field Office decisions issued around the same time, alongside authorizations for new natural gas wells and vegetation treatment work elsewhere in the region.

Murex Petroleum reports spill near Powers Lake — 450 barrels of produced water and 10 gallons of crude oil were spilled today near Powers Lake, the North Dakota Department of Mineral Resources says. Murex Petroleum Corporation reported the incident today at their site about 12 miles west of Powers Lake. North Dakota Mineral Resources says about 400 barrels of produced water and five gallons of crude oil have been recovered. A North Dakota Oil and Gas inspector is monitoring additional cleanup. KX News will continue to monitor this situation.

US oil exports in July fall to lowest level in eight months, data shows (Reuters) - U.S. oil exports in July fell to 3.66 million barrels per day, the lowest level in eight months, ship tracking data showed, as a short-lived peace deal between the U.S. and ‌Iran in June briefly flooded markets with Middle Eastern oil and diminished demand for American crude abroad. The U.S. had cinched the spot as the world's top oil exporter this year after the Iran war sharply cut supplies of Middle Eastern crude and forced Asian and European countries to turn to the U.S. to fill the gap. Shipments of U.S. oil surged to 5.7 million bpd in May, a monthly record. However, they have come off steadily since then. A memorandum of understanding signed between Washington and Tehran in June briefly helped stuck tankers to navigate through the Strait of Hormuz, adding supply to oil markets. The number of tankers ⁠exiting the strait in a day peaked at 42 during the peace deal period. The share of U.S. oil exports to Asia shrank to about 40% in July from 52% in June, with top buyers including Japan and South Korea taking fewer shipments. Cargoes to Japan, the top buyer in June and July, fell 67% to 324,000 bpd in July from a peak in May, while shipments to South Korea fell 39% to 474,000 bpd. Shipments to Europe also shrank to about 1.7 million bpd in July from as much as 2.5 million bpd in May. Exports of crude oil released from the U.S. government's Strategic Petroleum Reserve also slowed, totaling just 31,000 bpd in July. The two shipments headed to France and Peru, Kpler data showed. High refinery utilization in the U.S. also kept barrels away from the export markets, said Rohit Rathod, an analyst at Vortexa. The four-week average U.S. refinery utilization stood at about 96.3%, the highest rate since 2018, according to data from the U.S. Energy Information Administration, with input of crude oil to U.S. refineries at its highest level in about seven years. U.S. West Texas Intermediate crude's discount to globally traded Brent also narrowed significantly in June, when deals for July shipments are typically made, further hurting exports. WTI's discount to Brent averaged just $4.17 per barrel, compared with a discount of $8.16 in May. Since most U.S. grades are priced as a differential to WTI, when the benchmark becomes cheap relative to Brent, it encourages more exports from the U.S. The spread between the two has widened more recently, with WTI trading at a discount of as much as $5.42 in July, which should encourage exports in August and September, analysts said. Ship fixtures ⁠out of the U.S. Gulf Coast for exports over the last few days have been extremely busy, with a larger-than-normal amount of Very Large Crude Carriers fixed to Asia and Europe and Aframax tankers booked as well, said Scott Shelton, energy specialist at TP ICAP. A Very Large Crude Carrier can move up to 2 million barrels, while Aframax tankers can move about 750,000 ⁠barrels. Export volumes in August and September are expected to exceed 4 million barrels per day, Vortexa's Rathod said, although they are unlikely to reach the levels above 5 million bpd seen in April and May. Exports were forecast to be around 4.58 million bpd in August and 4.45 million bpd in ⁠September, according to research and consultancy firm Energy Aspects. The U.S. could be called upon to boost exports further if the conflict in the Middle East escalates, The U.S. has a monthly export capacity of about 6 million bpd, traders and analysts have said, citing limited pipeline capacity, vessel availability and loading schedules.

‘All hands on deck’: Oil industry rallies to keep Trump from stopping exports - Oil industry executives and White House officials, rattled by President Donald Trump’s growing criticisms of the sector, are making a renewed push to head off any move by the administration to curb U.S. petroleum exports, three people familiar with the effort said. Industry representatives said the outreach extends to officials on the White House Domestic Policy Council, the National Energy Dominance Council, the Energy Department and Chief of Staff Susie Wiles and comes as Trump has shown increasing frustration with stubbornly high fuel prices that could prove a drag on Republicans’ chances to keep control of Congress in this November’s elections. “There’s an all-hands-on-deck from industry and inside the administration to stave it off,” said an energy industry executive who was granted anonymity to describe discussions. White House officials haven’t formally pitched the idea, “but everyone knows Trump’s gonna Trump,” this person added. The White House maintains that export restrictions are not under consideration.

Peltola backs gas project, more refining in Senate bid - Democrat Mary Peltola is doubling down on her support for oil and natural gas as she seeks to become Alaska’s next U.S. senator. Peltola is hoping to distinguish herself in her bid to unseat Republican incumbent Sen. Dan Sullivan, in a closely watched race that could determine which party controls the upper chamber. First, she must survive this month’s nonpartisan top four primary, which will whittle down the race from 16 to four candidates regardless of party affiliation. Peltola, who was state’s sole House member from 2022 to 2025, revealed to POLITICO on Tuesday her plans to boost fuel refining in Alaska to improve the supply chain for gasoline and diesel there and push for the Alaska LNG export pipeline project as well as a permitting reform package to streamline projects. While she might not get much support from her party on some of those priorities, Peltola’s joining Democrats in endorsing the return of federal tax credits for renewable energy, incentivizing energy efficiency and expanding the Low Income Home Energy Assistance Program.

Shell 'Investing Heavily in Canada' to Expand Natural Gas Growth, CEO Says -- Energy major Shell is placing Canada at the center of its long-term growth strategy, doubling down on natural gas through LNG infrastructure and a takeover of Calgary-based ARC Resources. At a Glance:

LNG Canada reaches full operations
Phase 2 decision expected by year-end
ARC deal awaits final approval

Middle East Buyers Interested in LNG Cargoes From Canada, Pacific Energy Says - (Reuters) – Buyers in the Middle East are looking to secure liquefied natural gas from Canada as a hedge against geopolitical turmoil, the president of the company that majority-owns Canada’s Woodfibre LNG project said. Ratnesh Bedi, president of Singapore-based Pacific Energy — which owns a 70% stake in the Woodfibre project currently under construction on Canada’s Pacific Coast near Squamish, B.C. — said in an interview that his company is fielding inquiries from Middle Eastern buyers even though the project’s 2.1 million tonnes per year of capacity is already fully contracted to BP. The interest reflects a broader shift among global LNG buyers seeking to diversify supply sources in the wake of the war in Iran and Strait of Hormuz disruptions. Even the Middle East, one of the world’s top LNG-producing regions, is now looking to secure backup supply from routes free of geopolitical chokepoints like the ones that threaten its own exports. “Almost every week, someone is approaching us to say, ‘hey, do you still have capacity?’” Bedi said. “Very interestingly, not only is it north Asia that is coming, but to my surprise, even LNG suppliers out of Middle East are coming to find alternate supplies for their customers.” Bedi declined to name the companies. A spokeswoman for Canada’s Energy Minister Tim Hodgson confirmed Middle Eastern buyers have expressed interest not only in investing in the Canadian LNG sector, but in securing physical LNG cargoes from Canada, the world’s fifth-largest natural gas producer. “The federal government has heard strong interest from Middle Eastern companies in pursuing both LNG equity investments and offtake deals,” said spokeswoman Charlotte Power in an email. The Woodfibre project, which Bedi said is targeting December 2027 for its first export cargo shipment, is one of several LNG facilities under construction on Canada’s west coast. The project’s geographic location offers shorter shipping times to Asian markets than U.S. Gulf Coast LNG exporters, and Asian customers are increasingly interested in Canada as a supplier, Bedi said. The war in Iran and the resulting Strait of Hormuz disruptions have changed the way LNG buyers think about their portfolios, Bedi said. Increasingly, buyers worldwide want geographic diversification that will allow them to procure short-term emergency supply if necessary without relying on the global spot market.

Europe's gas storage falls to lowest August level since 2011 -- Europe's gas storage falls to lowest August level since 2011 Europe's natural gas storage levels have dropped to their lowest level for early August since 2011, raising concerns over supply security and the risk of higher prices ahead of the winter heating season. Gas storage facilities across the European Union were 57% full as of Aug. 5, according to Gas Infrastructure Europe data. The level is significantly below the nearly 70% recorded at the same time last year. Storage injections have progressed more slowly than in previous years after the 2025/26 winter, as tighter global LNG supply and disruptions linked to the Middle East crisis reduced cargo availability for Europe and increased competition from Asian buyers. The slower refill pace has raised doubts over whether the EU will reach its indicative target of filling storage sites to 80% by the beginning of December. Analysts warn that lower inventories could leave the market more vulnerable to price volatility during the winter months, particularly if colder-than-normal weather increases heating demand. Wood Mackenzie said Europe's low storage levels have heightened supply security risks for the 2026/27 winter months, adding that limited growth in global LNG supply and firm demand in Asia are expected to keep gas prices elevated through the season.

Global Natural Gas Prices Extend Slide as Hopes of Hormuz Opening Resurge -- Global natural gas prices continued falling Tuesday as chatter over a possible deal to reopen the Strait of Hormuz again increased. NGI chart tracking European Union natural gas storage through Aug. 2, 2026, showing inventories at 649.1 TWh, or 57.4% full, versus five-year averages and historical levels. At a Glance:
Deal to open Hormuz in works
Iran wants control
TTF, JKM fall

Asian Heat, Typhoon Dolphin Preserve Premium for US LNG - Hot weather across South Korea and Northeast China is helping preserve Asia’s price advantage for flexible US LNG, while a cooler European forecast and approaching Typhoon Dolphin complicate the near-term shipping outlook. Europe and Asia weather data chart showing trailing 365-day mean temperatures versus normal for Northwest Europe, Beijing, Seoul and Tokyo as of Aug. 3, 2026. At a Glance:
Korean heat supports Asia premium
Dolphin threatens East Asian shipping
US heat strengthens power demand

Petrobras halts studies for $1 billion gas pipeline in Brazil amid regulatory uncertainty -- Brazil's Petrobras is reassessing a major natural gas infrastructure investment in Brazil amid regulatory uncertainty surrounding a proposed government program that could also impact a project by Norway's Equinor, The proposal led Petrobras to halt studies for a planned $1 billion gas pipeline linked to its deep waters project in Brazil's northeastern Sergipe state, said three sources. Equinor's Raia project in the Campos Basin, expected to start operating in 2028, could also be impacted if the program is enacted, said an industry source. The government proposal, which Brazil's energy regulator ANP ⁠is expected to discuss on Friday, would require large producers to make part of their gas available to third parties via auctions, in an effort to boost competition and lower prices. Details of ANP's draft regulation are set to be unveiled on Friday, when the regulatory body opens a period for consultation with stakeholders, after which ANP's board of directors will hold a vote. Implementation could happen as soon as next year, after a final version is reached. "Who would authorize a $1 billion pipeline investment without assurances that their rights are protected?" said a source, who requested ‌anonymity ⁠because the discussions are sensitive. Petrobras did not reply to a request for comment. Equinor said regulatory predictability and stable rules are essential for investments requiring billions of dollars and development timelines exceeding a decade. The Petrobras pipeline is intended to transport gas from two planned floating production units in Sergipe to shore. Petrobras expects ⁠the units to process up to 22 million cubic meters of gas and 240,000 barrels of oil per day, with first oil expected in 2030. Equinor's Raia project is designed to produce 16 million cubic meters of ⁠gas per day, meeting roughly 15% of Brazilian demand, and includes a pipeline to Macae in Rio de Janeiro state.

ConocoPhillips Anticipates Limited Delays for Qatar’s North Field East LNG Project -Here are three things to know about the global LNG market this week BP said this week it would take full ownership of the Calypso natural gas project offshore Trinidad and Tobago with the acquisition of Woodside Energy’s 70% stake for an undisclosed price. BP is Trinidad’s largest domestic natural gas supplier. It also holds a 45% stake in the 15 Mt/y Atlantic LNG export plant.

Oil spill from grounded tanker off Oman expands sharply, satellite images show - ABC News - -- An oil spill caused by leakage from a U.K.-sanctioned tanker grounded for weeks off Oman appears to be expanding dramatically, reaching shorelines and far out to sea, according to experts and satellite images reviewed by The Associated Press. Greenpeace Germany said in a statement Monday that satellite images from a day earlier indicate the oil spill now covers an estimated 150 square kilometers (58 square miles), affecting large stretches of Qibliyah Island off Dhofar, Oman's largest governorate. Compared to satellite images from a week earlier, “it is a drastic increase,” said Nina Noelle of Greenpeace Germany, who noted that clearly a large amount of crude oil is leaking. Last week, the spill's surface area was estimated at 20 square kilometers (8 miles.) It was not clear what has caused the leak to grow. The images from Sunday showed an oil sheen spreading to the northeast from the 274-meter (899-foot) Suezmax tanker Caroline Bezengi, which is sanctioned by the U.K. for carrying oil that originates from Russia. The affected area is part of the Arabian Sea reserve, a marine protected area and host to wildlife including endangered petrels and the rare Arabian Sea humpback whale. Wim Zwijnenburg, an environmental expert for PAX, a Dutch organization that focuses on conflict and the environment, said the sheen is a thin layer of oil that often evaporates depending on the type of crude oil and weather conditions. Thick black patches of oil reached the southern and western shores of the island, he added. Zwijnenburg said the oil sheen appears to be roughly 90 kilometers long (56 miles), nearly double its length a week ago. He estimated that the tanker had been carrying over 800,000 barrels of crude oil. The tanker has been grounded since June, according to two shipping and maritime news outlets which reported that the crew reported an explosion on board at the time. The AP was not able to independently confirm the reports. The U.K. government said in its decision to sanction the vessel that it “has been or is likely to be involved in activity whose object or effect is to destabilize Ukraine” or to support the Russian government. The Cameroon-flagged tanker is also sanctioned by the European Union, Canada and Switzerland. SynMax Maritime, a geospatial data tracking company, earlier said on X it obtained images in May showing the tanker at the Black Sea port of Novorossiysk in Russia before its most recent voyage. “This dramatic expansion (of the oil spill) underscores the serious and continuing environmental threat posed by the stranded tanker — and exemplifies the dangers associated with the practices of Russia’s shadow fleet,” Greenpeace Germany said in its statement. It was not clear where the ship had been going when it grounded off Oman. Oman's Ministry of Transport, Communications and Information Technology had ordered the ship's owners to remove it and its cargo by July 23, according to the Omani Muscat Daily. It was not clear Tuesday if the owners have replied.

Grounded tanker triggers major spill off Dhofar - Oil spill from grounded tanker Caroline Bezengi off Oman Muscat – An oil spill caused by leakage from a tanker grounded for weeks off Dhofar appears to be expanding dramatically, reaching shorelines and far out to sea, according to experts and satellite images reviewed by Associated Press. Greenpeace Germany said in a statement on Monday that satellite images from a day earlier indicate the oil spill now covers an estimated 150sq km, affecting large stretches of Qibliyah Island off Dhofar. Compared to satellite images from a week earlier, “it is a drastic increase”, said Nina Noelle of Greenpeace Germany, who noted that clearly a large amount of crude oil is leaking. Last week, the spill’s surface area was estimated at 20sq km. It was not clear what has caused the leak to grow. The images from Sunday showed an oil sheen spreading to the northeast from the 274m Suezmax tanker Caroline Bezengi, which is sanctioned by the UK for carrying oil that originates from Russia. The affected area is part of a marine protected area and host to wildlife including endangered petrels and the rare Arabian Sea humpback whale. Wim Zwijnenburg, an environmental expert for PAX, a Dutch organisation that focuses on conflict and the environment, said the sheen is a thin layer of oil that often evaporates depending on the type of crude oil and weather conditions. Thick black patches of oil reached the southern and western shores of the island, he added. Zwijnenburg said the oil sheen appears to be roughly 90km, nearly double its length a week ago. He estimated that the tanker had been carrying over 800,000 barrels of crude oil. The tanker has been grounded since June, according to two shipping and maritime news outlets which reported that the crew recounted an explosion on board at the time. ‘This dramatic expansion (of the oil spill) underscores the serious and continuing environmental threat posed by the stranded tanker – and exemplifies the dangers associated with the practices of Russia’s shadow fleet,’ Greenpeace Germany said in its statement. It was not clear where the ship had been going when it grounded off Oman. Oman’s Ministry of Transport, Communications and Information Technology had ordered the ship’s owners to remove it and its cargo by July 23. John Amos, CEO of the environmental nonprofit SkyTruth, agreed that the oil spill appears to be growing more severe. The oil sheen has turned a darker brown in recent days, he said, suggesting the ship is now leaking a thicker oil, possibly from a breached fuel tank. The obscured outline of the ship also indicates the tanker may be sinking deeper into the water, Amos said. The ship is grounded on a rocky coastline and taking the full force of strong winds and waves. Amos hasn’t seen signs of any vessel activity near the tanker that would indicate a response to the spill. “Here we have a potential environmental disaster that nobody seems to care about in the middle of a so-called marine protected area,” Amos said. “Somebody has a financial interest in this. And where are they?”

Leaking tanker off Oman coast is sinking deeper, satellite images show, threatening marine life -- A sanctioned tanker carrying nearly 1 million barrels of oil appears to have become submerged deeper in waters off the coast of Oman where it has been grounded for several weeks, satellite images reviewed by the Associated Press show. Crude oil has been leaking and spreading quickly in recent days from the Caroline Bezengi and has reached the shores of Qibliyah Island, off Oman’s southwest coast. Bare Earth Silver Fiber Earthing Sheet Bare Earth Silver Fiber Earthing Sheet BGS · Sponsored call to action icon The affected area is part of the Arabian Sea reserve, a marine protected area and host to endangered wildlife, including petrels and the rare Arabian Sea humpback whale. Greenpeace Germany, which has been monitoring the situation, warned in a statement Wednesday of an “imminent risk of an unprecedented oil disaster from a broken tanker with devastating consequences for the region’s coastlines and marine ecosystems.” It urged all concerned bodies to act immediately to assess options to contain the spill, calling on Oman to request international assistance if needed. As of Friday, a spill of oil sheen covered more than 300 square miles, according to Wim Zwijnenburg, an environmental expert for PAX, a Dutch organization that tracks environment in conflicts. Greenpeace Germany said the spill is increasing, indicating deterioration of the vessel’s condition. Nina Noelle, an environmental disaster expert with the group, said satellite imagery indicates that the oil spill covered 17 square miles as of July 26. It increased to 58 square miles by Aug. 2, she said, and, as of Tuesday, it extended across at least 232 square miles. On Saturday, Zwijnenburg said the oil sheen was barely visible in new satellite images and appeared to have been diluted and dispersed by weather conditions. The 899-foot Caroline Bezengi has been grounded off Qibliyah Island after its crew reported an explosion on board June 8, according to media reports. The vessel is believed to be part of Russia’s “shadow fleet” and has been sanctioned by the British government and the European Union for carrying cargoes of Russian oil. It left Russia’s Black Sea port of Novorossiysk in May, according to geospatial data tracking company SynMax Maritime. The vessel’s owners are believed to be Shanghai-based, according to Greenpeace and other reports. The latest satellite images, dated Wednesday, appear to show an oil sheen trailing northeast of the tanker, aground off the rocky coastline, and surrounding the island. In the images, the vessel appears to be partly submerged, noticeably more so than on a photo taken July 31. July and August are peak monsoon season in the area. On Thursday, Oman’s government said it was responding to the incident. It was not immediately clear if the authorities have reached the tanker and whether there are efforts to salvage it or stop the leaking crude oil. The statement published by the Oman News Agency said authorities were observing the area through satellite images, field surveys and technical models. It said teams were ready “to implement necessary procedures” to handle potential impacts on marine life and navigation safety in the area.

Russian Oil Production Climbs Above 9 Million Bpd in July - Russia increased oil production in July as stronger exports and recovering refinery runs gave producers somewhere to put more barrels. Crude oil and condensate output rose by roughly 100,000 barrels per day from June to more than 9 million bpd, two industry sources told Reuters on Thursday. Oil and fuel sales remain critical to Russia’s budget, giving Moscow every reason to keep production flowing despite sanctions and repeated attacks on its energy infrastructure. OPEC estimates for Russian production came in at 8.928 million bpd in June, a 61,000 bpd decrease from May, and down from 9.129 million bpd across the full year 2025. Russia stopped publishing official oil production figures years ago, and now it’s just outside estimates and anonymous industry sources taking a stab at Russian output. July’s increase came on the back of increased crude exports and a partial recovery in refinery throughput after damage earlier this year knocked processing capacity offline. Russia’s central bank said refinery attacks and export constraints had already weighed on production, while limited pipeline and port capacity made it difficult to redirect displaced refinery barrels abroad. August could be a different story. Ukrainian drone attacks intensified in late July and early August, forcing several refineries to suspend operations. A fire broke out at a refinery in Russia’s Yaroslavl region on Thursday following another drone strike. Russia plans to increase crude exports from its western ports by 4% in August as unplanned refinery outages free up additional barrels. That only works if Moscow can find ships and loading capacity. Available tanker supply in the Black Sea is already tight, and another round of refinery disruptions could overwhelm export routes. The result is an increasingly awkward oil problem for Russia. Damaged refineries can temporarily boost crude exports by freeing barrels that would otherwise be processed at home. Too many outages, however, leave producers with more crude than ports and tankers can handle.

Gulf oil exports steady in July, still 40% below pre-war mark - Gulf countries' crude oil and condensate exports were largely steady in July and remained about 40% below pre-war levels, shipping data showed, with signs of a slowdown emerging in the second half of the month as fighting in the region intensified again. The relatively stable export levels have helped ease concerns about a sharper supply disruption and offset a drawdown in global oil inventories. However, tanker traffic through the key Middle Eastern waterways of the Strait of Hormuz and the Bab el-Mandeb remained well below levels before the U.S.-Israeli war with Iran began on February 28. Crude and condensate exports from Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Iran rose just 2% from June to average 10.7 million barrels per day (bpd) in July, according to Kpler. Exports reached between 12 million and 13 million bpd in the first half of the month before slowing as fighting resumed between Iran and the United States, Kpler and Vortexa data showed. Iraq doubled exports from June, driving the increase alongside higher flows from Kuwait and Iran, while shipments from Saudi Arabia and the UAE declined. Nine additional very large crude carrier loadings boosted Iraqi exports in July, although flows through Hormuz have slowed as fighting escalates, Vortexa analyst George Morris said. At least 14 vessels reported attacks in the region to the International Maritime Organization in July, up from eight in June. Higher exports have enabled some producers to raise output. Kuwait raised crude production to 1.971 million bpd in July from about 1.65 million in June, a person familiar with the matter told Reuters. Still, Saudi Aramco CEO Amin Nasser said on Tuesday the world had lost more than 2.6 billion barrels of oil since the war began and rebuilding inventories would take about 18 months at a rate of 2.1 million bpd, even if Hormuz reopened immediately. Saudi crude exports from the Red Sea port of Yanbu slowed last month as Yemen's Iran-backed Houthis stepped up attacks near the Bab el-Mandeb strait. Yanbu loadings fell to 3 million bpd after July 20 from 3.8 million bpd in April-June, according to Energy Aspects. Many tankers are loading at Yanbu with Automatic Identification Systems transponders switched off, while others are rerouting via the Suez Canal and making greater use of the SUMED pipeline linking the Red Sea with the Mediterranean to avoid the Bab el-Mandeb, Energy Aspects co-founder Richard Bronze said.

Saudi Oil Reroutes Hit Capacity and Security Limits - When Iran shut down the Strait of Hormuz, Saudi Arabia quickly redirected its oil flows to the Red Sea. Now, that route has become dangerous because of the Houthi blockade, so Saudi is rerouting to Egypt—and two LNG tankers in the Egyptian port of Damietta just got struck by drones. OPEC’s number-one is running out of options to reroute its oil exports.In early March, after Iran effectively paralyzed vessel traffic via the world’s biggest oil chokepoint, every Gulf state that could redirect export flows did so. In the case of Saudi Arabia, it shifted its onshore Arab Light volumes from the Persian Gulf in the east onto the 7 million barrels per day Petroline to the port of Yanbu on its western shores. This quickly pushed Yanbu’s oil exports to about 2.47 million bpd, a massive 330% surge compared with pre-war levels, according to Windward data.By April, Saudi Arabia was shipping over 4 million barrels daily from Yanbu, demonstrating the benefits of alternative routes for oil and oil products. Later, however, Saudi oil flows from the southern Red Sea port declined. By June, Yanbu loadings had fallen to around 2.39 million barrels daily, down by 41% from the March peak and a 66% slump from the total Saudi export level from January of about 7.96 million barrels daily across both Gulf and Red Sea terminals, Wood Mackenzie said earlier this month. The decline, on the one hand, may have been the result of the temporary Hormuz traffic resumption in late June, after Iran and the United States managed to agree a ceasefire deal. But then that deal fell through, missile strikes resumed, and Hormuz shut down again. According to the latest data from Windward, a total of five tankers went into the strait on July 29 and three exited the chokepoint. This is a fraction of pre-war traffic levels.Meanwhile, the maritime intelligence firm also reported crude loadings in progress at Yanbu—in dark mode. There were 12 vessels at the port, including oil tankers and cargo carriers, and there were separately two “active ship-to-ship transfer pairs”. From Yanbu, Saudi vessels now sail north instead of South to avoid the Houthi blockade, which the Yemeni group declared on Saudi vessels last week.This leaves Saudi Arabia with one maritime route out of the Middle East: the Suez Canal and the SUMED pipeline to Egypt’s Mediterranean coast. The SUMED pipeline has a capacity of 2.5 million barrels daily, which suggests it would be physically impossible for Saudi Arabia to shift all of its oil flows previously handled by the East-West pipeline and Yanbu to that conduit. Yet it could, reportedly, reroute half of them to SUMED, according to Windward.The firm reported earlier this week that it had tracked at least three Saudi very large crude carriers moving crude oil from Yanbu to the Egyptian port of Ain Sukhna, where it would be fed into SUMED. Windward noted the tankers were sailing in dark mode until they approached Suez. There are also tankers loading Saudi crude from the other end of the SUMED pipeline, the Mediterranean port of Sidi Kerir, from where the vessels carry the oil to Asian buyers. Theoretically, Saudi Arabia can keep sending oil north via Suez. Practically, it would be hard for the country to do that at a scale comparable to previous oil export routes, Kpler pointed out in a recent note that looked into the options on the table for Aramco. The analytics firm noted the fact that SUMED only has a capacity of 2.5 million barrels daily and, perhaps more importantly, other countries have reserved some of that capacity earlier. The Suez Canal can also only handle about 1 million barrels daily but not more. All this suggests Saudi oil flows would shrink in the coming weeks unless the Yemeni Houthis lift their blockade, which appears unlikely at this point.With lower Saudi volumes going out, other producers would need to step up—if they can. In a rare bit of positive news from the Middle East, traffic via the Strait of Hormuz appears to be picking up, albeit moderately. ING analysts reported the development, saying that tanker crossings were still “in single digits” but higher than earlier. The report noted U.S. Energy Secretary Chris Wright as saying that some 13 million barrels daily was coming out of the Persian Gulf. This is 65% of pre-war levels, according to ING.Meanwhile, Saudi Arabia is reaping the benefits of higher prices. The country’s budget deficit has slimmed down considerably as Brent crude has gained 47% since the start of the year. Oil production is down—by as much as 25% over the second quarter of the year—and that has affected the Saudi economy in terms of growth. Oil revenues, however, were up by 28% from the first quarter of the year. Not all is bleak for Saudi Arabia, then. However, geographical vulnerabilities would be difficult to overcome.

Seven OPEC nations adjust oil production output from September - Seven key OPEC+ alliance producers have agreed to adjust their collective oil output by 188,000 barrels per day from September, moving to support global energy market stability and enforce strict quota compliance following months of heightened geopolitical volatility. The participating nations, namely Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, decided to modify production levels drawn from additional voluntary supply adjustments originally announced in April 2023. Officials noted that the policy recalibration will provide participating countries with an opportunity to accelerate their compensation schedules for overproduced volumes recorded since January 2024. The shift takes place against the backdrop of the Strait of Hormuz crisis, which severely disrupted global fuel supply chains earlier this year. Military conflict in the Middle East led to maritime blockades along the critical Persian Gulf waterway, a choke point responsible for carrying roughly 20 per cent of the world’s petroleum and liquefied natural gas exports. The sudden removal of millions of daily barrels from global circulation sent Brent crude soaring past US$120 per barrel, threatening widespread inflationary shocks and prompting emergency strategic reserve releases across major importing nations. While international crude benchmarks have since eased from their seasonal peaks as transit routes partially adapted, energy markets remain delicate, prompting producers to carefully calibrate monthly supply. In their joint statement, the seven OPEC+ countries reiterated their collective determination to achieve full conformity with the Declaration of Cooperation, ensuring all member states strictly align with target baselines. The Joint Ministerial Monitoring Committee (JMMC) will continue to monitor output levels closely, ensuring that any overproduction accumulated since early 2024 is completely offset by scheduled cuts in coming months. The participating nations confirmed they will maintain their schedule of monthly virtual meetings to assess market conditions and demand forecasts, with the next session set for September 6.

Big Oil Warns Global Fuel Stocks Are Running Dangerously Low - The world is running short on fuels—the warning was first issued by some analysts who were watching the physical market rather than futures charts. Now, Big Oil is joining the chorus of warnings, with Shell, Exxon and Chevron all saying that prices at the pump are set to stay higher, regardless of where crude oil prices go. “The constraint pain point in the energy system is refining," Exxon’s chief financial officer Neil Hansen told Bloomberg in an interview last week. This, according to him, is “something that perhaps the market isn't fully focused on.” Indeed, most oil market observers have focused exclusively on futures prices even when the gap between those and physical oil prices has been quite substantial as a result of the export flow disruption in the Middle East that has now spread from the Strait of Hormuz to the Red Sea as well. Futures prices are currently down from last week’s peak on President Donald Trump’s latest declaration of peace talks—but physical markets are in a very different place, and that is especially true of refined products. Bloomberg reported last week that the wars in the Middle East and Ukraine, plus China’s caps on fuel exports—and Russia’s ban on diesel exports—have effectively slashed global refining capacity by as much as 10%. This may not sound like much at first glance, but it is a significant enough number to have some observers worried. Related: Ukraine’s Drone Campaign Drives Russian Oil Refining to 24-Year Low As early as April,Energy Aspects and Rystad Energy warned that global fuel inventories were getting squeezed by the Middle East war since the region, besides being a leading crude oil exporter, is also a major exporter of refined products. Now, more analysts are sounding the alarm as the U.S. and Israeli war against Iran enters its sixth month. “We’re in a diesel supply crunch right now because none of the Persian Gulf refineries can get product out,” Rabobank senior energy strategist Joe DeLaura said, as quoted by the Wall Street Journal last week. “Crude oil is just the input, but diesel is the everything the industrial economy runs on,” he also said. “Everything in agriculture, everything in construction, everything in mining. Also everything on the supply and distribution side runs on diesel.” Exxon’s chief executive gave the fuel squeeze story a dramatic twist last month, saying on a call with analysts that “I've never seen the available capacity relative to demand as low as it is today,” and adding, as quoted by Bloomberg, that “It's going to take a while for the industry to climb its way out of that hole.” Shell’s Wael Sawan, meanwhile, told CNBC that “Today, what you're seeing is all the price signals that we are short on diesel and gasoline. Which means we need to be able to now reoptimize at the refining side,” the top executive also said. In further comments on the state of fuel inventories globally, Chevron’s chief financial officer, Eimear Bonner, told Bloomberg that “The geopolitical uncertainty has tightened markets and is reinforcing the importance of reliable supply. The shock absorbers that have mitigated the volatility up until now, those continue to be drawn down.” This is why crack spreads are running at record highs, U.S. refineries are also running at record highs—and this is a problem because maintenance season typically begins in September and lasts through October; and maintenance season means a dial-down in processing rates. In the past, refiners have postponed maintenance season to capture a period of stronger demand, but this time, this may be unwise. According to Bloomberg, Exxon’s refineries along the Gulf Coast have been running at a utilization rate of 95%, and Chevron’s refineries have been running at 97%. Shell’s refineries, meanwhile, have actually topped 100% utilization rates, clocking in at 102% over the second quarter. This utilization rate cannot be maintained over an extended period of time without the risk for adverse consequences rising, which means there will be maintenance—and lower fuel production.

Middle East War Triggers New Global Refining Boom - For the second time this decade, a war has upended global oil markets and sent oil prices and refining margins to multi-year highs, benefiting the world’s biggest oil companies and top refiners.The war in Iran has tightened fuel supply as crude oil has struggled to move through the Strait of Hormuz, triggering reduced refining throughput in Asia and a temporary Chinese ban on exports. The fuel markets tightened even more than the crude market to send refining margins to record highs. And the biggest refiners benefited from the new refining boom, with Big Oil reporting their highest second-quarter earnings since the previous outbreak of a war, the Russian invasion of Ukraine in 2022. The bumper earnings were driven not only by the jump in oil prices between April and June—the contribution of the refining and trading divisions was also fundamental for fueling the high profits.Despite the slump in crude prices and the extreme volatility in the past five months, the refined product market continues to tighten with refining margins at record highs because the supply of petroleum products is much tighter than crude supply. Refining margins held at record highs even as crude oil prices soared to $100 per barrel and above. That’s because global gasoline, diesel, and jet fuel supply is tightening and has been tightening for months amid a combination of factors, most stemming from the wars in Iran and Ukraine. Last month, refining margins for gasoline and diesel jumped to new record highs amid on-and-off escalation in the Middle East, Russia’s ban on diesel exports, and crumbling global fuel inventories. In a rare statement last month, Fatih Birol, the executive director of the International Energy Agency (IEA), said that “There is no room for complacency on oil security amid the escalation in hostilities and a continued drawdown of available commercial inventories.” While assuring markets that IEA countries still hold more than 1 billion barrels of government-controlled stocks, Birol said that “Refinery activity and product supplies have not picked up as much as crude deliveries, meaning that markets for refined oil products, including diesel and gasoline, are considerably tighter than those for crude.” As a result of the tight fuel markets and soaring refining margins, the world’s biggest international oil companies reported their strongest earnings for the second quarter since at least 2022. They also expect refining to continue providing high earnings in the short term amid distorted fuel markets with restricted supply and refining capacity.

For the Love of Money – The Factors Keeping Refined Product Prices High, Even as Crude Prices Fall - Refined product prices have remained elevated this summer even as crude oil prices have fallen from their 2026 highs set just a few months ago. While several factors are contributing to the differential trends between crude and product prices, the overwhelming reason is that global supply and demand is much tighter in product markets than crude markets. In today’s RBN blog, we’ll discuss the main drivers behind the seeming disconnect between the two.As noted in the introduction, the biggest factor keeping product prices elevated this year has been the emergence of a refined product shortage. The most important drivers have been the disruption of normal vessel traffic through the Strait of Hormuz, damage inflicted on refineries in the Persian Gulf region, and the similar severe degradation of Russian refining operations by accelerated and more effective Ukrainian drone strikes. Contributing to these global product shortages are Chinese policies limiting product exports, a lack of new refining capacity coming online, and the impacts of a number of permanent refinery shutdowns over the past 18 months. Within the U.S. in particular, regulatory policies that have pushed Renewable Identification Number (RIN) prices to record levels have added to the high product prices. We’ll look at each of these drivers in turn, beginning with the Strait of Hormuz, and also provide some takes on longer-term refining prospects. The closure of the Strait of Hormuz has had a major impact on markets by removing significant volumes of exportable barrels from an already tight market. As shown in Figure 1 below, refined product exports from Persian Gulf countries (excluding Iran) collapsed from more than 3.3 MMb/d in 2025 to just over 1 MMb/d by April, a loss of more than 2 MMb/d. The decline is concentrated in clean products such as diesel (green bar segments), jet fuel (red bar segments) and gasoline (blue bar segments), which have tightened global supply and kept margins elevated. If operations remain severely limited, the squeeze will continue to be felt most acutely in these products. The disruption is not solely the result of shipping constraints. Iranian strikes have also inflicted significant damage on several of the region’s largest refineries, limiting their ability to produce exportable fuels even as shipping routes gradually reopen.Several Persian Gulf refineries have taken serious damage from Iranian strikes, with the following facilities especially impacted:

The recently expanded 405-Mb/d BAPCO refinery in Bahrain suffered the most severe damage and is not expected to be fully repaired until sometime in 2027.
The 460-Mb/d SATORP refinery in Jubail, Saudi Arabia, also saw extensive damage and is operating at reduced rates. It is not expected to return to full rates until early 2027.
The 417-Mb/d ADNOC Ruwais West refinery in the UAE and the 346-Mb/d KNPC Mina al Ahmadi refinery in Kuwait also experienced moderate-to-severe damage from Iranian drone attacks.

Russian refinery outages have also become a major driver of higher product prices. Ukraine has sharply increased the volume, range and effectiveness of its drone strikes, causing Russian refining operations to deteriorate rapidly. What began as temporary, isolated outages have turned into widespread, long-lasting disruptions, with nearly every major refinery hit — many of them multiple times. Estimated crude runs fell from about 5 MMb/d in 2025 to roughly 3.4 MMb/d in July, the lowest level in decades and only about half of the installed capacity of 6.7 MMb/d. Damage to critical processing units, including crude distillation units, fluid catalytic crackers, hydrocrackers, reformers, hydrotreaters, storage facilities and export infrastructure, has reduced clean-product output even more than overall refinery throughput.China is still a special case. While it has excess refining capacity and is a net product exporter, these exports are strictly controlled by the government. In March, China slashed export quotas significantly to prioritize domestic supply due to the Middle East war and Hormuz closure. This resulted in exports falling by about 40% year over year through May. While export restrictions were eased beginning in July, volumes remain below capabilities. Longer term, China will continue to prioritize domestic needs and is expected to keep closing smaller independent teapot refineries, with another 300 Mb/d of teapot capacity likely to disappear over the next few years, while some newer, more complex plants come online. Over time, there will also be rationalization at older fuels-focused state-owned refineries (such as the 410-Mb/d Dalian refinery, which was shuttered in 2025), as China tries to keep total capacity capped.In the U.S., the West Coast is shorter on products after Phillips 66 closed its 139-Mb/d Wilmington refinery near Los Angeles in Q4 2025 and Valero shuttered its 150-Mb/d Bay Area refinery in Benicia in Q1 2026 (see I Need More). While this improves the short-term outlook for the refineries that remain, it increases the need for imports, particularly of jet fuel and gasoline. Longer term, more closures still look likely later in the decade and into the 2030s. Our latest edition of Future of Fuels takes a detailed year-by-year analysis of refined product balances in each of the U.S. PADDs and what they will mean for future refinery capacity rationalization.Europe has a variety of issues and is particularly vulnerable to product shocks. After a recent round of shutdowns (three refineries and a total of over 400 Mb/d of refining capacity was permanently closed in 2025), there are no big closures currently planned through 2030 (although Neste has announced that its Porvoo, Finland, complex is phasing out petroleum refining by the mid-2030s) and existing refineries are benefiting from the tight product markets. Some outside buyers are showing interest in facilities that legacy owners want to sell, and several transactions have recently taken place. Longer term, pressure from slowing demand and costly regulations should keep pushing weaker plants out.The rest of the developed world faces a similar path. Countries like Japan, South Korea and Taiwan are likely to see more shutdowns as demand fades and costs stay high, although the weaker plants have already mostly gone. The market is still short of refining capacity in the right places. Net capacity growth over the next five years is only about 2.3 MMb/d, which is a very slow pace by historical standards. U.S. regulatory costs have also become a bigger part of the picture. When the Environmental Protection Agency (EPA) increased the minimum mandatory volumes for 2026, it pushed the price of the D4 Renewable Identification Number (RIN) to about 197 c/gal, well above 2025 levels. (The Renewable Fuel Standard, or RFS, requires certain minimum volumes of biofuels to be blended into fuel sold in the U.S. The required minimum, known as the Renewable Volume Obligation, or RVO, is determined each year by the EPA. A RIN is the regulatory mechanism for tracking the production and blending of renewable fuels and also allows refiners and importers to prove they’ve met their RVO mandates.) As we noted in Runaway, D4 RIN prices have more than doubled so far in 2026. D4 RINs ranged from roughly 77 c/gal in Q1 2025 to a high of about 116 c/gal in August 2025, highlighting how much tighter the market has become this year. As a result of the tight market, the crack spread has risen significantly. A crack spread is the refiner’s margin, essentially the difference between what it pays for crude oil and what the gasoline, diesel and jet fuel produced from that crude sells for. Higher crack spreads do not directly set retail prices, but they indicate that refiners can recover crude costs and preserve margins, which is consistent with firmer product prices. The 3-2-1 crack spread has spiked this year, rising from a weekly average around $20-$30/bbl in January and February to nearly $67/bbl in late July, its high point for the year (see Figure 2 below). (The 3-2-1 crack spread approximates a theoretical refinery crude yield that produces two barrels of gasoline and one barrel of diesel for every three barrels of crude input.)The product prices won’t change overnight. But once flows through the Strait of Hormuz normalize, the crude market should return to surplus. Refined products are likely to remain much tighter because refinery capacity takes longer to recover than crude production or shipping. Our forecast assumes Middle East refined product exports return to normal by the end of 2027, while Russian refinery operations will remain extremely challenged until hostilities cease. That should keep refining margins supported through most of 2027, although below today's exceptionally high levels. Even then, the product market will not immediately return to normal. Sanctions, infrastructure damage and logistical constraints have likely permanently reduced the flow of Russian clean products into global markets. At the same time, China cannot be expected to come to the rescue as it will continue to prioritize domestic supply, removing another important source of export barrels. That is why we expect refined products to remain tighter than crude well into 2027.

Aramco Sees Long Road Ahead to Restore Energy Supply Chains After Iran War - Saudi Aramco CEO Amin Nasser said this week the second quarter was one of “the most challenging ever” in the history of the company amid a conflict in the Middle East that shows no signs of stopping soon. EIA map highlights Arabian Peninsula energy chokepoints, including the Strait of Hormuz, Bab el-Mandeb, Suez Canal, SUMED pipeline and East-West crude oil pipeline. At a Glance:
Conflict cut 11 million b/d of crude supply
Could take 18 months to restore oil flows
Natural gas strategy remains unchanged

Why the Iran war hasn’t caused the biggest energy crisis in history like we were told — yet - When the Strait of Hormuz first closed at the start of the 2026 Iran war, the world braced for the “largest energy crisis in history.” Before the conflict began, almost 20 percent of the world’s traded oil passed through the narrow waterway between the Persian Gulf and the Gulf of Oman. Iran’s blockade of the strait effectively erased 15 million barrels per day from circulation overnight. Many experts and commentators predicted that the supply gap would have catastrophic consequences. Australia expected fuel rationing, the European airline industry warned of mass flight cancellations, and Goldman Sachs predicted widespread oil shortages. The International Monetary Fund warned of a potential global recession, and some traders worried that oil prices could hit $200 a barrel.But a little over four months into the war, little of that has come to pass.True, oil prices have gone up around the world, and there have been critical shortages of products such as cooking oil in some places, but rationing and recession have largely not arrived. Instead, a series of emergency measures have helped avoid the predicted crises: Oil exporters including the United States stepped in to fill the gap, either by drawing down strategic petroleum reserves or increasing production. Countries that were most reliant on fossil fuel imports from the Middle East took emergency conservation measures to reduce their demand. In the months since Hormuz cut off access to Iran’s main oil supply, the world has scraped every corner to find substitute barrels of crude oil. Many countries had stockpiles of oil saved up for an emergency, and in March, the International Energy Agency coordinated a historic release of oil from those reserves. That put on the market more than 400 million barrels, enough to fill about 20 days’ worth of the supply from Hormuz. In addition, oil producers around the world ramped up production to take advantage of elevated prices. The United States, Venezuela, and Norway all pumped out more crude in the first half of the year than they had in previous months, with those additional barrels going to countries that had previously relied on shipments from Iraq and Saudi Arabia. South Korea, for instance, doubled its oil imports from the United States between February and April of this year. Iraq and Saudi also routed more than 6 million barrels of oil per day through land pipelines that were operating below capacity, skirting the strait altogether.China, the world’s largest oil importer, also helped stabilize the world market. It stopped buying oil for its own strategic reserve after the war began, and it also stopped purchasing crude for its own domestic refineries, shutting them down for months. To generate electricity, it pivoted to coal and solar. These measures together freed up another 5 million barrels per day for the world market.Even as the world scrambled to replace Middle East oil, the Asian countries that rely on it moved aggressively to slash their usage. Many nations idled their factories and industrial facilities that use petroleum-based liquids, which shaved off a few million more barrels a day. Some increased imports of electric vehicles or accelerated plans to adopt solar and wind technology to reduce their dependence on foreign oil and gas. But the vast majority of imported oil is used for transportation and power generation, so in order to weather the crisis, countries also needed to change consumer behavior. More than 100 countries enacted some form of conservation measure, ranging from limits on elevator usage to outright restrictions on when people could drive. The Philippines, Pakistan, and Sri Lanka all moved to a four-day work week, and Myanmar restricted gas vehicles to driving every other day based on the number of one’s license plate. Bangladesh limited air conditioning temperatures to 77 degrees Fahrenheit and closed public university buildings. This helped reduce demand on a power grid that runs on imported oil and liquefied natural gas, much of which also comes through Hormuz. Some wealthier countries in Europe got even more ambitious: The Netherlands, for instance, allowed citizens to trade in gas cars for electric ones, and Sweden halved the cost of public transportation fares.These conservation measures likely prevented an out-of-control price spiral, giving importers time to procure more oil from other nations. They also likely saved Asian countries from needing to impose extended periods of rationing the way the United States had to do during the oil crisis of the 1970s, the largest previous disruption to the world’s oil supply.“There have been multiple measures taken by governments both on the supply and demand side, but mainly on the demand side for large oil importers,” said Kevin Morrison, an analyst at the Institute for Energy Economics and Financial Analysis who focuses on oil and gas in Australia. “This is a trend that is likely to continue as the uncertainty around future oil supplies remains uncertain.”Even though the most dire early predictions haven’t borne out, the closure has not been easy. In the early days of the crisis, before countries procured substitute fuel, price spikes and supply disruptions in Asia altered millions of lives. Taxi drivers in Myanmar lost their livelihoods and funeral homes shut cremation services for lack of fuel. A lack of fertilizer during key rice planting times in Asia will likely hamper harvests later this year, contributing to higher food prices. Aside from crude oil, the war has caused shortages of other goods like helium and sulfur, shipments of which also pass through the Strait of Hormuz. This has contributed to broader inflation for everything from nickel to semiconductors. The market shifts of the last few months have had consequences even in places like the United States that could afford a consistent supply of oil. Refiners around the world have produced more jet fuel to keep airlines supplied, but that means they have also produced less gasoline for cars. As the U.S. heads into the peak summer driving season, its gasoline inventories are as low as they have been in a decade. Supplies could drop even lower this fall as companies perform delayed maintenance on their hard-working refineries, said Bob McNally, the founder of the analysis group Rapidan Energy Group, who also advised the administration of President George W. Bush on oil policy.It may soon get a lot worse. Even though global oil prices have fallen from their peak, there’s still a fundamental mismatch between oil demand and oil supply. As a result, experts say the world could still experience severe economic disruption later this year if the strait remains closed. Some vessel traffic resumed through the Strait of Hormuz last month following a tentative agreement between the United States and Iran, but the ceasefire has collapsed and Iran now says the strait is closed again.“The market decided at the end of Round 1 to price for perfection” in an Iran deal, McNally said. “Instead, we’re getting Round 2. We played some tricks and some cards, but all these things … are either wearing off or already known. Those “tricks” have run their course. Most countries’ emergency stockpiles are close to depleted, and the U.S. strategic petroleum reserve has fallen so low that its structural integrity is starting to strain. At the same time, China has ended what McNally called its “crash diet” and has started to buy oil for its refineries again.This leaves the world without the buffer that it had during the first round of the crisis.“Hormuz 1.0 was about supply and inventory,” said McNally. “In Hormuz 2.0, prices will have to do more of the work. And they have to go really high, because the problem is demand is inelastic — you’ve got to eat.”

Iran says Hormuz talks are only with Oman, not US - Iran is negotiating only with Oman over future arrangements for managing the Strait of Hormuz and has held no talks with the United States, a source close to the Iranian negotiating team told Iran’s Fars News Agency. The source said Tehran had maintained from the beginning that the southern route created following the "US betrayal of Article Five" was unsafe and illegal.According to the source, attempts by the United States and some of its allies to make the southern route permanent have faced firm opposition from Iran. Tehran says US pressure failed to change Hormuz position. The source told Fars that US military attacks and threats have failed to alter Iran’s position regarding the Strait of Hormuz arrangements.The source added that if the United States and some of its partners had not obstructed Iran-Oman negotiations, the talks would have reached an outcome in a short period of time. Iran has previously said that discussions with Oman focus on establishing a safe framework for maritime traffic through the strategic waterway. Fars reported that US officials sent contradictory signals in recent days, directly or through regional partners, causing disruption to the negotiation process.The agency cited concerns that obstruction by the United States or certain regional parties could prolong the talks or prevent them from reaching an agreement.The Strait of Hormuz remains a key maritime route for global energy shipments, and any changes to its management could have significant implications for international trade and shipping.Iran and Oman are close to reaching an agreement on reopening the Strait of Hormuz, provided that US and other foreign interference in the region ceases, according to an informed source cited by Iran's Press TV.The source said on Tuesday that the ongoing discussions are strictly bilateral between Iran and Oman, stressing that the United States is not involved in the negotiations.The remarks come after a senior Iranian source told Reuters earlier that Tehran and Muscat are discussing a plan to reopen the strategic waterway while giving Iran oversight of shipping entering the Strait of Hormuz. A senior Iranian political and security source told Al Mayadeen that Iran is not holding any negotiations with the United States. The source accused US President Donald Trump of habitually lying and of blaming others rather than taking responsibility for undermining the prior understanding.According to the source, Iran's actual negotiations are with Oman, its "permanent neighbor", given that the Strait of Hormuz lies entirely within the two countries' territorial waters. "The United States has always been a disruptive and destabilizing force," the source said, "and cannot present itself as the region's savior."On the strait's status, the source said whether it stays open or closed "depends on the broader situation in the region," but stressed it will not reopen "as long as US aggression, the blockade, and other provocative measures against Iran continue." The US military presence itself, the source added, is the core problem, since no country in the region wants war. "Everyone in the region understands that Netanyahu and Trump's recklessness has imposed an enormous and wide-ranging cost on them," the source concluded.

Iran says negotiations with Oman over Strait of Hormuz in final stages | US-Israel war on Iran News | Al Jazeera - Iran’s foreign minister says negotiations with Oman on the Strait of Hormuz are entering their “final stages”, as Tehran insists the vital waterway will never return to its pre-war status. In a post on Telegram on Sunday, Abbas Araghchi said that in a report he presented to the cabinet, he described the negotiations between Tehran and Muscat as “on the way to being finalised”. Foreign Ministry spokesman, Esmail Baghaei, said that Tehran and Muscat were close to reaching a deal on a new maritime route through Hormuz, separate from existing corridors. “We are now going to reach an understanding on a route acceptable to both sides – neither the northern route nor the southern route – but one that respects the sovereign rights of both sides and safeguards our national interests and security,” Baghaei said in an interview with state television. Muscat did not immediately comment on the matter. Both Iran’s and Oman’s territorial waters border the Strait of Hormuz, the key waterway through which about 20 percent of global oil consumption is normally shipped. Details of the new route were not immediately clear, but Iran has effectively maintained control over the strait since the outbreak of war. On February 28 , the US and Israel launched strikes aimed at destroying Iran’s missile programme, preventing a nuclear weapon and cutting off support for allied armed groups. A June ceasefire collapsed within weeks in a dispute over shipping routes through Hormuz and fighting reignited in July. Baghaei earlier said, “an understanding between Iran and Oman on a new route has nothing to do with whether the Strait of Hormuz is reopened or remains closed”. He blamed the US for the closure and accused Washington of breaching its commitments, according to Iran’s Fars news outlet. “The strait was closed because of the United States’ breach of its commitments, its naval blockade of Iran and all the hostile measures that the United States has taken against the Islamic Republic of Iran during this period,” he said. Iranian President Masoud Pezeshkian said on Sunday that the memorandum of understanding (MoU) with the US would become the “cornerstone” of Tehran’s future foreign relations. “We must strive to make the enemy abide by what it signed. The security of our country, the region and our allies will be enhanced by this memorandum,” Pezeshkian said on X. Hassam Ghashghavi, spokesman for the Iranian parliament’s national security commission, said that mediators were trying to revive the June MoU, and were aware that Hormuz remained the central issue, Iranian news outlet SNN reported. Ghashghavi said it was possible that an Iranian delegation would travel to Muscat again as part of ongoing diplomacy. “This is the nature of diplomacy and this exchange of views continues regularly,” he said. The comments come after US President Donald Trump said early on Sunday that the US and Israel had agreed to halt new attacks on Iran, provided a deal to end the months-long conflict is reached “rapidly”. Trump posted on Truth Social that the US was “locked and loaded and ready to go against the Islamic Republic of Iran”, but Tehran and other Middle Eastern countries asked him to hold off on new attacks. “Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL.” Trump said the deal “would include the Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran’s nuclear threat”. “The Country of Israel joins me in this commitment. Get to work, everybody, and get it DONE,” he wrote. Saudi Arabia’s Crown Prince, Mohammed bin Salman, (MBS) spoke to Trump by phone on Saturday, urging him to “prioritise dialogue” and “reduce escalation”, the Saudi Press Agency reported. US news website Axios reported that MBS expressed concern over Trump’s plans for large, new attacks against Iran and reportedly urged him to refrain. “We know that, in a larger context, Iran is habituated to dancing to the same old tune, as it is receiving this oscillating rhetoric from the US president about the possibility of another round of confrontation on the one hand, [while also hearing] statements about these talks going well and that a potential deal is within reach,” said Al Jazeera’s Tohid Asadi, reporting from Tehran. “In that regard, we know that the Iranian side, at the same time, is responding with the same two-sided message, saying that the road for diplomacy is open on the one hand, [while also maintaining] full preparation for another round,” he added.

Oil prices tumble as Trump announces talks with Iran – Global crude oil prices declined sharply on Monday after US President Donald Trump announced plans to pursue talks with Iran, prompting expectations that tensions in the Middle East could ease. The decline came after Trump announced that plans for further military action against Iran had been called off and that diplomatic efforts would resume. International oil markets responded positively to the prospect of reduced tensions, with traders betting that a diplomatic breakthrough could lower the risk of prolonged disruption to crude supplies from the region. Brent crude, the global benchmark, fell by around 4.2 per cent to approximately $84 a barrel, while US West Texas Intermediate (WTI) crude declined about 5pc to around $80 per barrel. Market analysts said investors were selling oil contracts amid expectations that improved relations between Washington and Tehran could reduce the possibility of further disruption to energy supplies. Despite the decline in prices, shipping through the Strait of Hormuz has not yet returned to normal. Iran has not announced a full reopening of the strategic waterway to international shipping. According to the information provided by Iranian authorities, discussions with Oman are continuing over the establishment of a temporary and secure maritime corridor. If an agreement is reached, ships could potentially resume limited passage through the route. Such a development could further ease concerns over global oil and gas supplies and put additional downward pressure on prices. The Strait of Hormuz is one of the world's most important energy corridors, making any disruption there particularly sensitive for international markets. Current oil flows through the route remain significantly below levels recorded before the conflict. Around 5 million barrels of crude per day are reportedly moving through a southern route near Oman's coast, compared with roughly 20 million barrels per day before the conflict. Saudi Arabia has also redirected part of its oil exports towards western markets through the Red Sea, using the Bab el-Mandeb route. However, security concerns remain around the waterway because Iran-backed Houthi forces in Yemen have previously targeted shipping in the area. As a result, energy traders remain cautious despite the decline in crude prices. A successful US-Iran diplomatic process, combined with the full restoration of shipping through the Strait of Hormuz, could significantly reduce the geopolitical risk premium currently reflected in oil prices. Analysts say crude prices could move closer to pre-conflict levels if supplies return to normal and fears of further military escalation subside. However, uncertainty surrounding the Strait of Hormuz, Bab el-Mandeb and the broader security situation in the Middle East means the global energy market remains vulnerable to sudden price movements.

Oil Dips on Middle East Breakthrough Hopes Despite Iran Stance (DTN) -- Crude and product futures began August trading on a weaker note on Monday as a lull in Middle East fighting eased tensions across the region, although there was no evident pickup of cargo on key Middle East waters for energy shipments. Despite U.S. President Donald Trump's assertion that bilateral talks were set to resume, Iranian Foreign Ministry spokesperson Esmaeil Baqaei pushed back Monday, saying Tehran has no plans for direct negotiations with Washington. Media reports suggest U.S. officials had also downplayed expectations, with no new diplomatic efforts noted beyond existing mediated channels. Tehran has stuck to its position that any vessel crossing the Strait of Hormuz will have to use the Iran-drawn corridor on the waterway as part of its longer-term plan to collect a toll from passing ships. The U.S., meanwhile, is trying to promote an alternative route via Oman waters. "We are not negotiating with the United States at this time," Baghaei Hamaneh, spokesman for Iran's Ministry of Foreign Affairs, said. "Our negotiations are with Oman and are focused on reaching an understanding on a route that will ensure the safe passage of shipping through the Strait of Hormuz." Maritime services report that daily transit on the Hormuz remains at roughly 10 to 11 ships per 24-hour period, representing about 11% to 15% of pre-crisis levels. Approximately 180 to 350 vessels are anchored in regional holding zones awaiting clearance, naval escort or insurance coverage. Away from the Hormuz, the Bab-el-Mandeb Strait connecting the Red Sea to the Gulf of Aden is seeing roughly 4 million bpd of Saudi crude diverted through its waters. But heightened Houthi threat warnings and near-miss drone strikes have throttled daily transits to a trickle here too, forcing over 80% of transiting tankers to operate with transponders off or broadcast armed security details to keep Asian-bound volumes moving. Despite this, energy futures began August trading on a weaker note, on apparent hopes for a breakthrough in shipping conditions. NYMEX WTI for September delivery settled lower by $4.33, or 5%, at $80.34 bbl. The U.S. crude benchmark rose 22% last month. ICE Brent for October delivery finished down $4.16, or 4.7%, at $83.77 bbl. The global crude benchmark gained 21% last month. Refined products followed crude futures lower. In diesel, NYMEX ULSD futures for September delivery settled down $0.2443, or 6%, at $3.8772 gallon. On the gasoline front, NYMEX September RBOB softened by $0.2549, or 8%, to close at $2.9667 a gallon. The U.S. Dollar Index strengthened by 0.051 points to 99.840 against a basket of currencies.

Oil prices drop 7% to three-week low after Trump cancels attack on Iran (Reuters) - Oil prices fell about 7% to a three-week low on Monday after U.S. President Donald Trump held off on a fresh attack on Iran in the hope of sealing a quick deal that could boost oil supplies from the Gulf. Front-month Brent ‌futures fell $6.35, or 7.0%, to settle at $83.77 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $4.33, or 5.1%, to settle at $80.34. That was the lowest close ‌for Brent since July 13, due in part to the start of the less expensive October futures as the front-month after the more expensive September contract expired on Friday. Brent prices for October were down 4.7% from where the October contract closed on Friday. Iran said on Monday there were no talks under way with the United States and no plans for any meetings, contradicting Trump who had cited talks he said would take place that afternoon as justification for calling off attacks. Over the weekend, Trump repeated a pattern that has emerged throughout the past five months: announcing plans for "massive attacks" on Iran, only to cancel them at the last minute. Trump on Monday said talks with Iran "are going on right now", adding that Iran faced "decapitation" if Tehran ‌did not agree to a pact to end the conflict. Iran's ⁠Foreign Ministry spokesman Esmail Baghaei rejected the claim, saying no negotiations with the United States were taking place and no meetings were scheduled. Iran had no plans to host foreign delegations or send negotiators abroad in the coming days, he said. "Today's sharp selloff ... in crude ⁠futures looks like another overreaction to Trump's comments that a deal with Iran is imminent following his weekend threats of massive attacks that were also suggested as imminent," "Trump is continuing a pattern of occasionally talking the oil market lower in precluding a sustained advance in gasoline prices," the Ritterbusch analysts said. On Monday, Trump again called on oil companies to lower gasoline prices for U.S. consumers, chiding Chevron and Exxon Mobil for making too much money. In addition to the drop ‌in crude futures, prices for both U.S. gasoline and diesel fell by around 5% during Monday's session. Six Saudi-flagged supertankers have changed course in the Gulf of Aden in recent days and are heading to southern Africa following threats by the Iran-backed Houthi movement in Yemen to target Saudi shipping, tracking data showed on Monday. Over the weekend, however, two tankers laden with Saudi oil crossed the Bab el-Mandeb Strait between the Red Sea and the Gulf of Aden, while traffic in the Strait of Hormuz between Iran and Oman slowed following reports of vessel attacks, shipping data showed on Monday. About a fifth of the world's oil passed through the Strait of Hormuz before the U.S. ‌and Israel started bombing Iran on February 28. A Panama-flagged tanker carrying Russian naphtha attempted to pass through the Bab-el-Mandeb in the last week of July before changing course to sail around Africa instead, trade sources said and shipping data from LSEG showed. Russia said on Monday it was stepping up protection of ships in the Azov-Black Sea basin while also developing alternative cargo routes, in ‌a move that follows a sharp escalation of attacks at sea by both sides in the war in Ukraine. Russia was the world's third-biggest crude oil producer behind the U.S. and Saudi Arabia in 2025, according to U.S. energy data, and is a member of the OPEC+ group of countries, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies. Export disruptions from the Gulf, Russia and Kazakhstan, caused by the Iran and Ukraine wars, have meant successive monthly OPEC+ hikes over ‌most of this year have not translated into extra oil on the market. On Sunday, OPEC+ approved an oil production quota increase of around 188,000 barrels per day from September.

Oil prices rise on US-Iran peace talks uncertainty - The global crude oil prices rose Tuesday despite ongoing peace talks to end the conflict in the Middle East International benchmark Brent crude futures for October traded at $84.64 per barrel, up one per cent from the previous close of $83.77. US benchmark West Texas Intermediate (WTI) futures traded at $80.63 per barrel, up 0.5 per cent from $80.25 in the previous session. Persistent security risks facing commercial shipping in recent days and concerns that renewed tensions between Washington and Tehran could disrupt crude shipments through the Strait of Hormuz continued to support prices. There are palpable fears that the conflict could escalate again in the Middle East despite ongoing peace talks, keeping the risk of supply disruptions in focus. Negotiations between the US and Iran, supported by Gulf countries and aimed at reaching a lasting agreement, have yet to produce a concrete outcome, lending further support to crude prices. Although geopolitical tensions in the region eased somewhat over the past week, the lack of tangible progress toward a lasting peace and the absence of clear signals from Tehran have reinforced investor concerns that hostilities could resume. Speaking to reporters after signing executive orders at the White House, US President Donald Trump said negotiations with Iran had resumed on Tuesday and were currently underway. He also accused Tehran of making contradictory statements about the talks. He added that negotiations were being held at Iran’s request with the support of Saudi Arabia, the UAE, Qatar and other Gulf countries, describing them as Tehran’s last chance to reach an agreement. Trump also said he had been prepared to launch one of the largest military operations since World War II, but decided against it after Gulf countries urged him to halt the planned strikes. Meanwhile, expectations of additional supply from OPEC+ continued to limit further gains. According to a statement from OPEC, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman agreed during an online meeting to increase collective production by 188,000 barrels per day (bpd) from September. The decision was in line with their commitment to support oil market stability and as part of the gradual unwinding of the 1.65 million bpd voluntary production cuts announced in April 2023.

Oil prices drop after Qatar, Bessent raise hopes of a US-Iran deal - Oil prices fell as low as 5% on Tuesday to a three-week low after comments by Qatar and US Treasury Secretary ‌Scott Bessent raised hopes for a diplomatic resolution to the Middle East conflict, which would improve oil flows through the Strait of Hormuz. Front-month Brent futures fell $3.95, or 4.72%, to $79.82 a barrel by 1340 GMT after hitting a session high of $86.33. Prices fell to as low as $79.73 a barrel at one point, or down around 5%. US West Texas Intermediate (WTI) crude was down $4.32, or 5.38%, at $76.02 a barrel after touching a session high of $82.33. Both contracts fell to their lowest levels since July 13. Earlier on Tuesday, both benchmarks had risen more than 2% ⁠on uncertainty over prospects for a US -Iran agreement. "Oil prices are pairing earlier gains on comments from Qatari officials saying a potential US-Iran resolution has been drafted," said Giovanni Staunovo, a UBS analyst. Qatar Foreign Ministry spokesperson Majed Al Ansari said efforts to secure a diplomatic resolution to the conflict were continuing, with mediators, including Qatar, Pakistan and Oman, coordinating closely to facilitate negotiations and exchange draft proposals between the two sides. US Treasury Secretary Bessent said on Tuesday a deal with Iran to reopen the Strait of Hormuz could come as soon as Tuesday or Wednesday. Bessent told CNBC he had seen "quite a few" ships exiting the Strait of Hormuz.

Oil Market Plunges as Hopes for U.S.-Iran Deal Intensify - The oil market posted an outside trading day as the market weighed contradictory statements in regards to talks between the U.S. and Iran against comments by Qatar and U.S. Treasury Secretary Scott Bessent that raised hopes for a diplomatic resolution. The crude market retraced Monday’s losses in overnight trading and rallied to a high of $82.33 as Iran’s Foreign Ministry spokesman Esmail Baghaei rejected U.S. President Donald Trump’s claim, saying no negotiations with the U.S. were taking place or scheduled. However, the market erased its gains and sold off sharply after Qatar’s Foreign Ministry spokesperson said efforts to secure a diplomatic resolution were continuing, with mediators including Qatar, Pakistan and Oman coordinating to facilitate negotiations. Qatari officials said a potential U.S.-Iran resolution has been drafted. Also, U.S. Treasury Secretary Bessent said a deal with Iran to reopen the Strait of Hormuz could come as soon as Tuesday or Wednesday. The market sold off to a low of $75.16 by mid-day. It later settled in a sideways trading range during the remainder of the session. The September WTI contract settled down $4.57 at $75.77 and the October Brent contract settled down $4.41 at $79.36. The product markets ended the session lower, with the heating oil market settling down 10.67 cents at $3.7705 and the RB market settling down 11.45 cents at $2.8522. According to the UKMTO maritime security agency, a cargo vessel reported being struck by an unidentified projectile near the Strait of Hormuz off Oman’s coast. Maritime sources said that the vessel struck near Hormuz was a dry bulk ship. Its crew had to abandon the vessel and one seafarer was missing. Kpler data showed that traffic through the Strait of Hormuz remained slow, with three tankers and three bulk carriers among the six vessels transiting the strait on Monday, down from seven the previous day. Goldman Sachs said it expects Brent crude to remain in an $80 to $90/barrel range until there is either confirmation of a new U.S.-Iran nuclear deal or a significant escalation in attacks. The bank also assumes a fair value of Brent spot prices at around $80/barrel, suggesting the market prices only a moderate risk premium. The White House is expected to extend a waiver of the Jones Act in the coming days, reaching for one of the few tools it has to try and hold down gasoline prices as President Donald Trump escalates his attacks on Exxon Mobil and Chevron for making “too much money.” The Jones Act requires cargo moving between U.S. ports to be carried on ships built in the U.S., owned by U.S. companies and crewed by American workers, and the waiver aims to lower gas prices by increasing shipping flexibility and reducing transport bottlenecks. The current waiver is set to expire on August 16th and has already become the longest suspension of the Jones Act rules in the program’s history. The exemption has been used nearly 200 times over four and a half months through the end of July.

Iran Says Deal With Oman Close, But It Doesn't Mean the Strait of Hormuz Will Open To All Traffic - - The Iranian Foreign Ministry said on Wednesday that Iran and Oman were close to reaching an agreement on a new shipping corridor through the Strait of Hormuz, but that it wouldn’t guarantee that the waterway would be opened to all traffic.“If certain third parties do not obstruct the process, the two countries are also in the final stage of reviewing and drafting a joint statement covering the main points of agreement,” said Foreign Ministry spokesman Esmaeil Baghaei, according to Iran’s PressTV. Baghaei added that the agreement “cannot in itself be interpreted as meaning the Strait has become safe for passing vessels” since the restrictions on the waterway have been imposed due to US military aggression, and the US blockade of Iranian ports remains in effect. According to media reports, the potential agreement would involve inbound ships traveling through the Strait on the Iranian side while outbound ships leaving the Persian Gulf would stay close to Oman.Unnamed Iranian officials told The New York Times that the agreement would involve “service fees” for the environmental impact of shipping, cargo-ship and tanker security, and staffing, and that the revenue would be divided between Iran and Oman. A US official speaking to the outlet denied that there would be any kind of toll.In recent days, Trump administration officials have spoken positively about the prospect of a deal over the Strait of Hormuz, though President Trump has continued to threaten Iran with destruction if an agreement isn’t reached soon.

Yemen’s Houthis Say They’ll Target Tankers in Northern Red Sea - Yemen’s Houthi militant group said it would attack Saudi oil tankers in the northern Red Sea, a potential fresh escalation in its attacks on shipping. Houthi military spokesperson Yahya Saree said the move was a result of the kingdom diverting ships away from the Bab el-Mandeb chokepoint to the south of the waterway.

Yemen’s Houthis claim ballistic missile strike on Saudi oil tanker in Red Sea - Yemen’s Houthi group claimed Wednesday that it struck the Saudi oil tanker Wafaa with several ballistic missiles in the northern Red Sea off the coast of Yanbu. The group’s military spokesperson, Yahya Saree, said in a statement on X that the missiles hit the tanker “accurately.” Saree said the attack was part of what the group calls its maritime blockade of Saudi Arabia and its “blockade for blockade” strategy. The attack brought to eight the number of Saudi oil tankers targeted by the group since the blockade began July 22, he said. Saree also claimed that 29 Saudi oil tankers had either been prevented from passing through the Red Sea and Arabian Sea or forced to turn back. He said Saudi Arabia had redirected its oil tankers to the northern Red Sea after the group succeeded in imposing what it described as a blockade from the Bab al-Mandab Strait. Saree vowed that the group would continue and intensify attacks on Saudi oil tankers in the northern Red Sea to block maritime access routes and prevent their passage, “regardless of the consequences.” There was no immediate comment from Saudi authorities on the claims.

Brent oil back above $80 after Houthi attack on Saudi tanker - Oil prices rebounded on Wednesday, with Brent climbing back above $80 a barrel after Yemen's Houthi rebels attacked a Saudi oil tanker in the Red Sea, reigniting concerns over Middle East supply risks despite renewed talk of US-Iran negotiations. The benchmark for two-thirds of the world's oil was up 1.49 per cent at $80.54 a barrel at 5.12pm UAE time. West Texas Intermediate, the gauge that tracks US crude, added nearly 1 per cent to $76.46 per barrel. On Tuesday, amid conflicting claims on peace talks between Washington and Tehran, Brent and WTI sank by more than 5 per cent. Brent went below $80 for the first time since the second week of July, even flirting with $77, before a late surge saw it settle at $80.10. Brent was in and out of the $79 range on Wednesday. US President Donald Trump on Monday said Washington was restarting talks with Tehran, claiming the latter was keen to forge a deal. But Iran quickly denied that, saying its only active discussions were with Oman on the reopening of the Strait of Hormuz. That was the third such “imminent deal” announcement from the US leader in recent days, “following a pattern of strikes continuing despite pauses being declared”, analysts at Dubai-based investment services firm Asas Capital said. On Wednesday, Houthi rebels struck the Saudi oil tanker Wafa in the northern Red Sea, off the coast of Yanbu, with several ballistic missiles. The group's spokesman, Yahya Saree, claimed the strike on the tanker was “precise” but provided no details of damage or casualties. Saudi authorities have yet to release a statement. Also continuing to be a sticking point is the Strait of Hormuz, where tensions remain high in the key chokepoint for energy exports from the Middle East. Two Pakistan-flagged crude tankers safely transited the Bab Al Mandeb strait, which connects the Red Sea to the Gulf of Aden and the Indian Ocean, after loading at Saudi Arabia’s Yanbu port, according to data from the maritime intelligence firm Windward, despite the Houthi threats to Saudi-linked ships. “For a region that ships roughly a fifth of global oil supply through [the Strait of Hormuz], this is the number to watch: further escalation risks a genuine supply shock; a ceasefire or diplomatic off-ramp could unwind much of this move quickly,” Asas analysts added. The ripple effects of the war on global oil prices have made it difficult for governments, energy companies and analysts to project where the market is heading. On Sunday, Opec+ agreed to increase crude oil output for a sixth consecutive month in September, pledging that the group would continue to monitor developments and act accordingly.’

Yemen's Ansar Allah Announces Attacks on Two Saudi Tankers as It Continues Enforcing Blockade - - Yemen’s Ansar Allah, also known as the Houthis, announced Wednesday that its forces struck two more Saudi tankers as its forces continue enforcing a blockade on Saudi Arabia, which was recently imposed following Saudi strikes on Yemen’s Sanaa International Airport.Ansar Allah military spokesman Brig. Gen. Yahya Saree first announced a missile strike on a tanker, the Wafa, in the Red Sea near the Saudi port of Yanbu. Later in the day, he claimed another missile attack on a second tanker, the Daisy, which he said was hit while transiting the Gulf of Aden. So far, there’s been no confirmation of the strikes from Saudi Arabia. According to Yemen’s SABA news agency, Saree said that “the targeting comes within the framework of enforcing the maritime blockade against the Saudi enemy, according to the principle of ‘blockade for blockade.'”A day earlier, Ansar Allah targeted the Najran Airport in southern Saudi Arabia, which reportedly destroyed a radar. According to Saree, Yemeni forces have targeted at least eight tankers since the blockade began, and that 29 have been prevented from reaching Saudi Arabia, as the threat of. being attacked has made ships reverse course.While the Saudis have launched some strikes against Yemen since the blockade began, they have refrained from a major military retaliation, and Bloomberg reported on Tuesday that Riyadh was seeking to contain the conflict via Omani-mediated talks. The report said that the US had been warning against an escalation that could lead to the complete closure of the Bab el-Mandeb Strait.But at the same time, the US supported the strikes on the Sanaa airport, and The Guardian reported that Riyadh was preparing for a major escalation in Yemen, which could include a ground offensive. President Trump has also threatened to restart his bombing campaign against the Houthis, which failed to stop attacks on Israeli shipping last year, but did kill a large number of civilians.

Second Foreign Vessel Attacked Off Yemen Within Hours, Amid Houthi 'Siege For Siege' Blockade - The Houthis have quickly made good on their earlier threat, with the United Kingdom Maritime Trade Operations (UKMTO) Centre having reported the following fresh attack off Yemen:

UKMTO has received a time-late report of an incident 9NM southwest of Al Mukha, Yemen.
The CSO of the vessel has reported that the vessel was attacked by an Uncrewed Surface Vessel which caused a fire onboard. The crew have been rescued by local authorities and are safe and well.
The vessel has been reported as sunk.
Vessels are advised to transit with caution and report any suspicious activity to UKMTO while authorities are investigating.

The stricken vessel's crew has reportedly been rescued, after the fire on board and subsequent sinking. Oil prices remain elevated also as over in the Strait of Hormuz, the Iranians insist that the Omani deal to reopen the strait has "nothing to do with the United States." Update(1235ET): The Houthis have apparently attacked two vessels off Yemen's coast within a mere few hours on Tuesday, as clearly the assault on international shipping by the Iran-aligned group has grown.The below alert from the United Kingdom Maritime Trade Operations (UKMTO) Centre is the second one today. Just hours before, an initial vessel had been reported sunk, the crew rescued... and now this: The incident took place 95 nautical miles (176km) south-east of Aden, Yemen, according to UKMTO, adding that all the vessel’s crew are “accounted for and safe”. And just the day prior: "The Indian Ministry of External Affairs on Tuesday condemned the attack on the India-flagged commercial vessel, MSV Faize Noore Oliya, which sank in the Red Sea, off the coast of Yemen on August 4, 2026."This comes as the Saudis are desperately trying to put together a 'coalition of the willing' to defend against such attacks. While the Houthis have not declared Bab al-Mandab Strait closed to 'all' shipping, they have declared a 'siege for siege' blockade against Saudi shipping.

Oil Steadies After 2-Day Plunge; US Inventory Data Looms -- Crude and refined product futures steadied Wednesday morning, rebounding from a two-day slide that erased more than 10% across energy markets, as new security threats offset diplomatic efforts for the Middle East. By 8 a.m. EDT, NYMEX WTI for September delivery was up $0.31, or 0.4%, to $76.08 bbl. ICE Brent for October delivery advanced $0.79, or 1.0%, to $80.15 bbl. Among refined products, NYMEX ULSD for September delivery gained $0.0167, or 0.4%, to $3.7872 gallon. September RBOB edged up $0.0043, or 0.2%, to $2.8565 gallon. Wednesday's early bounce came as security risks re-emerged across Red Sea shipping routes. Houthi militants in Yemen claimed responsibility for a missile attack targeting a Saudi oil tanker off the coast of Yanbu, a major Red Sea crude export terminal for Saudi Arabia. The strike, along with reports of a separate commercial vessel coming under fire near the Strait of Hormuz on Tuesday, Aug 4., served as a stark reminder of ongoing physical hazards despite diplomatic headlines. The attacks undermined enthusiasm around reports that the U.S., Iran and Oman were finalizing an interim framework to restore navigation through the Strait of Hormuz. Qatari mediators confirmed that a draft proposal aimed at short-term de-escalation had been circulated among negotiating teams following discussions between Trump and Qatari Emir Sheikh Tamim bin Hamad Al-Thani. U.S. President Donald Trump repeated both his optimism that the vital waterway would reopen "very soon," and caution that Tehran would face severe military retaliation if it abandoned negotiations. Iran has been indifferent to Trump's threats while being focused on getting Persian Gulf states to agree to a path on the Strait it controls -- a maneuver Washington believes is aimed at collecting a toll from users of the waterway. On the inventory front, the U.S. Energy Information Administration is due to release crude, gasoline and distillates stockpile data for the week ended July 31 at 10:30 a.m. EDT. The American Petroleum Institute, in its own assessment for the week, reported Tuesday that domestic crude inventories rose by 2.69 million bbl, versus consensus estimates for a draw of 2.0 million bbl.

WTI Maintains Losses After Another SPR Drain, Distillate Stocks At 30-Year Seasonal Lows - Oil prices have roller-coastered overnight - higher on new Houthie attacks in the Red Sea and now lower on reports that a draft deal approval in imminent. Up... A Houthi military spokesperson said the group would escalate attacks on Saudi vessels in the northern Red Sea — the latest workaround for the kingdom’s exports to avoid the perilous Bab al-Mandab Strait off Yemen’s coast to the south. Exports from the Red Sea have become a vital lifeline for Saudi Arabia since the Iran war choked off shipping from the Persian Gulf. Down... Axios reported the US, Iran and Oman were nearing an interim, 60-day accord to reopen the waterway, with Washington aiming for an announcement later Wednesday. The proposal would involve no tolls or fees, with inbound vessels using a northern lane, and outbound traffic a southern one. But in the short-term, and especially in light of the recent decline in refined product prices, all eyes are on the official inventory and supply data (which API reported a crude build and diesel draw). API:

Crude +2.7mm (-2.1mm exp)
Cushing +2.4mm
Gasoline +200k
Distillates -1.2mm

DOE:

Crude +2.48mm (-2.1mm exp)
Cushing +2.36mm - biggest build since March
Gasoline -1.64mm
Distillates -3.47mm

After last week's huge crude draw, this week saw a modest (2.48mm) build in inventories while Cushing stocks soared 2.36mm barrels (the most since March). Products saw sizable draws... The Trump admin drained another 2.84mm barrels (smallest since the start of the war) from the SPR last week, making a total decline of 110mm barrels since the start of the war... Cushing stocks rose very marginally off 'tank bottoms'... Seasonally, distillate stockpiles are now at their lowest since 1996, driven by a 5.2 million barrel draw on the Gulf Coast. That’s the largest pull on stocks for the region since February 2021. US Crude production ticked up modestly last week - just shy of record highs... US refiners are importing the most crude since May of this year as refiners continue to run hard, churning through over 17 million barrels of oil each day. Bloomberg reports that Gulf Coast crude refinery runs fell but remained at the highest levels for this time of the year. The drop can be partly explained by a blip in operations at the Marathon Garyville refinery. The Louisiana facility shut down its 283,000-barrel-a-day crude unit and a vacuum distillation unit last week. The units were restarted on Monday. Meanwhile, crude exports are holding below 4 million barrels a day, far from the nearly 6.5 million daily barrels earlier this year as the Iran war disrupted global supply. WTI is lower and maintaining the decline after the official inventory data... Even if a short-term deal to normalize commercial shipping is reached, however, it might still fail to end the war or resolve Trump’s concerns about the Islamic Republic’s nuclear program. “It’s still very unclear who is negotiating with whom and what could come out of this agreement,” said Hamad Hussain, a climate and commodities economist at Capital Economics. “As we’ve seen before, these deals can very easily collapse. That’s obviously a risk we’ll see persist, even after a deal may be announced.” Meanwhile, Bloomberg reports that the Houthis remain a source of concern for shipowners. People familiar with the matter said this week that Saudi Arabia had held talks with the militants through Omani mediators in an effort to prevent the conflict from widening. They said the leading OPEC member is continuing to prepare military options should negotiations fail.

Oil Market Falls as U.S.-Iran Peace Progress Offsets Red Sea Attack- The crude market on Wednesday weighed the reports of progress towards possibly ending the war with Iran against reports that Yemen’s Iran-aligned Houthi rebels attacked a Saudi oil tanker in the Red Sea. In overnight trading, the oil market breached its previous low and sold off to a low of $74.24 after Qatar said on Tuesday that mediators were making progress towards ending the Iran war and President Donald Trump stated that talks with Iran were going well. However, the market bounced off its low and retraced its earlier losses amid reports that the Houthis launched a missile attack on a Saudi oil tanker off the coast of Yanbu, a key port for Saudi crude oil exports. The market traded to a high of $76.70 early in the morning. The crude market later erased some of its gains and traded back towards its low, in light of a 2.5 million barrel build in crude stocks and news that Iran and Oman agreed on the geographic coordinates for a shipping route through the Strait of Hormuz. The September WTI contract ended the session down 55 cents at $75.22, while the October Brent contract settled up 9 cents at $79.45. The product markets ended the session mixed with the heating oil market settling up 2.57 cents at $3.7962 and the RB market settling down 1.34 cents at $2.8388. Shipping traffic at the key Middle Eastern maritime chokepoints of the Strait of Hormuz and the Bab el-Mandeb was little changed on Tuesday from the previous day. Shipping data from Kpler showed that eight vessels transited the Strait of Hormuz, including five tankers and three bulk carriers, the same as the previous day. Six of the vessels, three tankers and three bulk carriers, were entering the strait, while a gas carrier and a tanker were exiting. Also, according to LSEG and Kpler data, a liquefied natural gas tanker controlled by Abu Dhabi National Oil Co reappeared outside the Strait of Hormuz on Tuesday, carrying a cargo loaded from Das Island. The tanker is currently off the western coast of India. LSEG data shows a discharge location of India’s Dahej terminal in Gujarat, with an arrival date of August 5th. In the Bab el-Mandeb, 20 vessels crossed the strait on Tuesday, with 10 entering and 10 exiting the waterway, the same as the previous day. Six tankers, three dry bulk carriers and a gas carrier entered the Bab el-Mandeb, while seven tankers and three bulk carriers exited. U.S. independent refiner Phillips 66 plans to operate refineries in the mid-90% range of their combined capacity in the third quarter of 2026. Phillips 66’s Chief Executive, Mark Lashier, said the company’s refineries ran above their faceplate capacity during the second quarter. Phillips 66 has been granted about 20% of Jones Act waivers issued by the federal government to increase domestic transport of refined products and crude oil during the Iran war, according to Brian Mandell, executive vice president of marketing and commercial. A Jones Act waiver lifts requirements to send fuel on U.S.-crewed, U.S.-owned tanker ships between U.S. ports.

Oil Prices Steady as Iran, Oman Near Strait of Hormuz Agreement - Oil prices remained firm on Thursday after Iran and Oman announced they were nearing an agreement to allow shipping through the Strait of Hormuz following prolonged negotiations that excluded the United States. Iran's Foreign Ministry said on Wednesday that a joint Iran-Oman statement on a proposed shipping route through the key waterway is in the final drafting stage. The development would be critical to energy transit, after a previous ceasefire deal with the US signed in June fell through amid renewed strikes, bringing new uncertainty over shipping flows, Upstream reported. Iranian news agency IRNA reported the two sides have reached a broad agreement on inbound and outbound shipping routes after more than three weeks of negotiation, which are understood to have excluded the US. A framework agreement on this would allow inward and outward journeys through a shipping route through the strait in Iranian waters. Local reports suggest both Iran and Oman are also discussing a transit fee structure. The option, requesting transiting vessels for paying a fee for each transit, violates international maritime law and charges of this kind are considered illegal by the International Maritime Organization. Nevertheless, the ongoing conflict between the US and Iran, which started at the end of February with joint US-Israeli strikes on the Middle Eastern oil producer, have shown Iran has been able to de-facto block shipping through the strait, through a mix of attacks on ships transiting, the threat of underwater mines and the US’ inability to effectively disarm Iranian drone capacity. At this stage in the conflict, Iran and now Oman are seeking to impose fees to ships transiting the strait the two sides control. Market sources have commented in recent weeks that a fee-based transit may be preferable to no transit at all - the waterway handles about one-fifth of global oil and gas shipping, with critical impact for global energy markets. Markets have been sanguine about the Oman-Iran deal, holding firm on Thursday after a few sessions of falling prices. Both global crude benchmarks were flat during Thursday European trading hours, with Brent at $79.5 per barrel and WTI at $75.4 per barrel. Prices have come off from recent levels of around $100 per barrel in late July - when the US resumed strikes on Iran - following a latest pause in attacks, and renewed comments from US president Donald Trump that negotiations have resumed, which Teheran denies. Markets will remain jittery and prone to sustained volatility the longer the conflict drags on. Oil prices dropped heavily in the weeks after the first ceasefire MoU in June, before rising again during late July as that agreement collapsed. Brent and WTI are down between about 10% and 12% over the last five sessions, while still sharply higher than pre-war levels. Distillate and fuel prices have soared in the meantime, with refining capacity in key producers in the Gulf affected by the conflict and the disruption to shipping, while major refiners such as Russia and China have curbed their fuel exports. Historically high refining margins have proved a boon for refiners, creating windfall earnings for supermajors in quarterly earnings.

Crude Prices Up 1% as Iran Warns Gulf States on Attacks -- Crude and refined product futures were up 1% or more Thursday on reports that Iran had threatened to strike Gulf states hard unless they could convince the U.S. to end its war on Tehran. The warning comes amid the slow pace in diplomatic efforts since fighting ceased two weeks ago and appears to portend another round of escalation in Middle East hostilities should the Trump administration react adversely to the call. By 9:10 a.m. EDT, NYMEX WTI for September delivery was up $1.47, or 2.0%, at $76.69 bbl. ICE Brent for October delivery rose $1.83, or 2.3%, to $81.28 bbl. Among refined products, NYMEX ULSD for September delivery advanced $0.0122, or 0.4%, to $3.8084 gallon. September RBOB advanced $0.0480, or 1.8%, to $2.8868 gallon. The U.S. Dollar Index rose by 0.134 points to 99.68 against a basket of currencies. Renewed U.S. strikes on Iranian infrastructure will trigger retaliation against regional oil fields, power grids, refineries and water plants, Iranian Foreign Minister Abbas Araqchi was cited warning in a media report that also urged Gulf states to push the Trump administration to end the war. The Iranian threat came after U.S. President Donald Trump's recent warning that Washington might target Iran's energy network.

Oil prices jump as Houthi attacks raise Saudi supply risks- The Yemeni Houthis have struck Saudi Arabia’s southern province of Najran in the latest flare-up of Middle Eastern hostilities, killing 11 civilians, Reuters has reported, citing a spokesman for the military coalition led by Saudi Arabia that fights the Houthis in Yemen. The news comes on the heels of reports that Iran is considering a ban on U.S., Israeli, and other “hostile” vessels in the Strait of Hormuz and fining ships that violate the ban with a sum equal to 20% of the cargo’s value. From other vessels, Iran plans to ask for passage fees of between $5% and 7% of the cargo’s value. The reports pushed oil prices higher today, with Brent crude recovering above $80 and trading at $83.80 per barrel at the time of writing. West Texas Intermediate also rebounded, trading at $78.33 per barrel earlier today. In its report on the Houthi attacks, Reuters cited a senior Saudi official as saying the Houthis and Iran-affiliated Iraqi groups were planning to launch a coordinated attack on Saudi civilian targets, notably energy infrastructure and ports. This would further complicate the energy export situation in the Middle East as peace remains highly elusive. The Houthis are also targeting Saudi tankers in the Red Sea, with two vessels struck over the past week, lending additional support to oil prices. The Houthis themselves reported on Thursday an attack on Saudi troops in Yemen, which suggests that war is heating up yet again as well. The latest events come after U.S. Treasury Secretary Scott Bessent earlier in the week said a deal was within reach and oil flows via Hormuz could resume as early as Wednesday. Instead of that happening, hostilities are escalating.“Despite clear signs of progress in recent days, the tenor of the rhetoric and growing distrust between the US and Iran mean things could go from bad to worse once again,” ING commodity analysts wrote in a note earlier today.

Oil settles up $3 as Iran reviews bill to ban US, Israeli vessels from Hormuz (Reuters) - Oil prices settled up by more than $3 a barrel on Thursday on news an Iranian parliament committee is reviewing a bill ‌that would ban U.S. and Israeli vessels from the Strait of Hormuz and fine violators up to a fifth of the value of their cargo. Brent crude futures settled up $3.04, or 3.83%, to $82.49 a barrel. U.S. West Texas Intermediate futures settled up $2.07, or 2.75%, to $77.29. An Iranian lawmaker said a parliament committee is reviewing a preliminary bill to ban U.S., Israeli and other vessels deemed hostile from the Strait of Hormuz, and fine violators of the proposed restrictions up to 20% of cargo value, according to Fars news agency. "Crude ⁠traders remain focused on the U.S./Iran agreements, and the longer the delays, the more prices will fade back to the upside," Before the Iran conflict began in late February, about one-fifth of global daily oil and liquefied natural gas supplies flowed through the Strait of Hormuz. Meanwhile, Yemen's Houthis said they carried out missile and drone attacks on "Saudi deployments" in Marib and Hadramout in Yemen on Thursday, and that they killed or wounded hundreds of Saudi-aligned fighters, and destroyed military camps, weapons depots and vehicles. "The market is going up and down as tensions rise and fall and of course these attacks are a significant development because it is more activity in the other theatre, away from the Persian Gulf, and is a reminder that the Red Sea passageway could still ‌be in ⁠jeopardy," Gulf countries' crude oil and condensate exports were largely steady in July and remained about 40% below pre-war levels, shipping data showed. Iran has warned Gulf states that any new U.S. attack on its territory would trigger attacks on critical energy infrastructure across the region, according to five sources, as Tehran seeks to raise the cost of military action by threatening Washington's closest regional allies. The Iran-aligned Houthis said on Wednesday they ⁠had launched a missile attack on a Saudi oil tanker off the coast of the kingdom's Red Sea port city of Yanbu and another missile attack on a Saudi oil tanker in the nearby Gulf of Aden. There was no confirmation from Saudi Arabia on either incident. "Houthi attacks so far have not significantly ⁠disrupted oil and gas supply but this might change if attacks escalate further," Saudi Arabia has slightly lowered the official selling price for its flagship Arab Light crude oil to Asia in September, a pricing document reviewed by Reuters ⁠showed. Elsewhere, a major oil refinery in Russia's Yaroslavl region was on fire after a big Ukrainian drone attack and emergency services are working to put out the blaze, Mikhail Evrayev, the regional governor, said on Thursday.

Crude Oil Prices Rise Over 1% As Iran-Oman Strait Of Hormuz Proposal Sparks Supply Concerns - Oil prices continued their upward movement on Friday as markets remained concerned about possible disruptions to shipping through the Strait of Hormuz amid escalating tensions involving Iran and the US. Brent crude futures gained 99 cents, or 1.2%, to $83.48 per barrel, while US West Texas Intermediate (WTI) crude futures climbed 85 cents, or 1.1%, to $78.84 per barrel. Iran-Oman Proposal Fuels Strait Of Hormuz Concerns The rise in crude prices followed reports that Iran, with Oman’s involvement, was considering restrictions on vessels classified as hostile passing through the strategically important Strait of Hormuz. The proposed legislation under review by an Iranian parliamentary committee could prevent US, Israeli and other vessels deemed unfriendly from using the waterway. The proposal also includes penalties of up to 20% of a cargo’s value for ships violating the restrictions. The Strait of Hormuz is a crucial global energy route, handling nearly one-fifth of the world’s oil and liquefied natural gas (LNG) trade before the latest conflict intensified. Iran is also reportedly seeking transit fees of 5-7% of cargo value from vessels using the route, while Oman is discussing a possible fee of around 3%. However, the US has pushed for unrestricted shipping access without additional charges. Industry experts said implementing such an arrangement could face challenges due to existing US sanctions and restrictions related to insurance and payment mechanisms. Oil prices had earlier declined during the week on hopes of diplomatic progress between the US and Iran. However, renewed concerns over shipping restrictions pushed Brent crude back above the $80-per-barrel level after it briefly fell below that mark earlier. Adding to geopolitical concerns, Yemen’s Iran-aligned Houthi rebels claimed responsibility for missile and drone attacks targeting Saudi forces in the Marib and Hadramout regions. The possibility of tighter shipping restrictions comes at a time when markets are already sensitive to geopolitical risks, making crude prices vulnerable to further swings depending on developments in the Middle East.

Oil rebounds as US job losses and fragile Iran talks rattle markets -Oil prices reversed course and climbed on US job losses reported by the federal government and worries over talks between Iranian and US negotiators to end fighting that has lasted five months. Brent crude futures were up 84 cents, or 1.02 per cent, at $83.33 a barrel at 10:28 CDT (15:28 GMT). West Texas Intermediate futures climbed 89 cents, or 1.15 per cent, to $78.18. Oil futures had settled more than $3 a barrel higher on Thursday as Iran reviewed a bill to ban US and Israeli vessels from the Strait of Hormuz, through which roughly a fifth of the world’s oil and liquefied natural gas normally passed before the war began at the end of February. Oil prices fell earlier in the week as a possible solution to the conflict looked more likely, and both benchmarks are on course for a weekly loss of more than nine per cent. "The market on Friday is all about the jobs report," The US economy lost 23,000 jobs in July, the US Government reported on Friday. "It means there's less likely to be intervention by the Federal Reserve to raise interest rates," Federal Reserve rate hikes take away purchasing power from consumers because interest rates across the economy increase, sending more of the cash in consumer pocketbooks to debt issuers and not to products suppliers like fuel stations. Analysts also said that this week's developments have signalled that hostilities between Iran and the US are not yet over. Iran is seeking fees of between five per cent and seven per cent of the price of cargoes from ships using the strait, a senior Iranian official said. Oman, meanwhile, is discussing fees of about three per cent while Washington wants no fees at all. Four industry sources have said the proposed deal is not easily workable because of US sanctions and restrictive insurance clauses on any payments. "The structure of the Iran-Oman agreement in its current form and the power it yields to Iran is nothing that (US President Donald) Trump can accept politically," said Bjarne Schieldrop at SEB Research. "Trump would face heavy political criticism at home if he did." While this week's signals on a potential deal have driven a roller-coaster ride in market sentiment, the market remains in the dark as to what needs to happen for the agreement to be clinched, said Vandana Hari, founder of oil market analysis provider Vanda Insights. Meanwhile, Saudi Arabia expects imminent coordinated attacks from Iraqi militias north of the Persian Gulf state and from Yemen's Houthis from the south under the supervision of Iran's Islamic Revolutionary Guard Corps, a senior Saudi official said. The official, speaking on condition of anonymity, said late on Thursday that intelligence reports from Saudi Arabia, the United States and other regional countries indicated civilian and economic sites could be targeted, including energy infrastructure, ports and airports. Yemen's Iran-aligned Houthis said they carried out missile and drone attacks on Saudi deployments in Marib and Hadramout in Yemen on Thursday. Saudi Arabia, Pakistan and Turkey signed a joint defence agreement in Mecca on Friday, uniting Sunni Muslim US allies alarmed at a regional conflagration that has rained missile fire onto gulf oil exporters. Trump told reporters on Thursday that he believed that the war would be over soon.Meanwhile, drone attacks in the Black Sea took out as much as a fifth of Caspian Pipeline Consortium (CPC) oil loadings in July, four sources familiar with the data said, as the Russia-Ukraine war spilled over to hit Kazakhstan's and Western oil majors' sales.

Brent climbs $1 on uncertainty over end to Iran war - (Reuters) - Brent crude oil climbed more than $1 a barrel on Friday over ongoing uncertainty about the negotiations in progress that determine control of, and reopen, the key shipping artery of the Strait of Hormuz. Brent crude futures settled at $83.55 a barrel, gaining $1.06, or 1.3%. West Texas Intermediate futures finished at $78.18 a barrel, up 89 cents, or 1.15%. Oil futures settled more than $3 a barrel higher on Thursday as Iran reviewed a bill to ban U.S. and Israeli vessels from the Strait of Hormuz, through which roughly a fifth of the world’s oil and liquefied natural gas normally passed before the war began at the end of February. Oil prices fell earlier in the week as a possible solution to the conflict looked more likely, part of an on-again, off-again pattern that has persisted since the U.S. and Israel jointly struck the nation in late February, igniting a conflict that has now stretched into a sixth month. Brent was on course for a weekly loss of more than 8%, while WTI lost more than 7%. While this week's signals on a potential deal have sent a roller-coaster ride in market sentiment, the market remains in the dark as to what needs to happen for the agreement to be clinched, said Vandana Hari, founder of oil market analysis provider Vanda Insights. "The market is trying to assess if an Iran-Oman agreement would allow a U.S.-flagged vessel to transit the Strait of Hormuz," "Would it allow a U.S.-owned vessel to go through? Would it allow a vessel headed for a U.S. port to go through?" Both Iran and Oman are said to have agreed on the route ships would take through the strait, which lies between their two countries. It is unclear if the U.S. will agree to these terms. Analysts also said that this week's developments have signalled that hostilities between Iran and the U.S. are not yet over. Iran is seeking fees of between 5% and 7% of the price of cargoes from ships using the strait, a senior Iranian official said. Oman, meanwhile, is discussing fees of about 3% while Washington wants no fees at all. "The longer the supply disruption goes, the longer the world's commercial reserves are being drawn down," he said. Four industry sources have said the proposed deal is not easily workable because of U.S. sanctions and restrictive insurance clauses on any payments. "The structure of the Iran-Oman agreement in its current form and the power it yields to Iran is nothing that (U.S. President Donald) Trump can accept politically," "Trump would face heavy political criticism at home if he did." "We need that strait to be reopened fully,"

Oil Books 2nd Weekly Loss Amid Hormuz Deal Hopes -- Crude futures rose Friday, but the gains were not enough to offset a second straight week of losses in a market hampered by expectations for a peace deal for the Middle East and its key energy waterway, the Strait of Hormuz. NYMEX WTI crude for September delivery settled the day up $0.89, or 1.2%, at $78.18 bbl. For the week though, the U.S. crude benchmark fell 9%, extending the prior week's 5% drop. ICE Brent crude for October finished the session up $1.06, or 1.3%, at $83.55 bbl. The global crude benchmark was down 9% on the week, after a prior weekly loss of 7%. Among refined products, NYMEX ULSD for September delivery closed up $0.0204, or 0.5%, at $3.9024 gallon. The diesel futures contract fell 5% on the week. NYMEX RBOB for September climbed $0.0468, or 1.6%, to finish at $2.9853 gallon. The gasoline futures contract tumbled about 4% on the week, echoing after the prior week's decline. While prices rebounded in the latest session, the upward momentum was limited as market participants pinned hopes on the U.S. and Iran agreeing to some sort of deal soon to reopen shipping on the Hormuz -- the waterway that in normal times oversaw the transit of around 20 million bpd of global energy liquids. After a ceasefire abandoned in mid-July and brief resumption in fighting, expectations have grown for another formal truce amid reports that Iran and neighboring Gulf states were negotiating a temporary deal to reopen the Strait. But any transit agreement might have trouble gaining U.S. approval as Iran appears determined to charge fees of between 5% and 7% on cargoes passing through the strait -- a move Washington has vowed to oppose.

Vessel traffic through Hormuz dwindles this week as markets watch Iran-Oman talks (Reuters) - Shipping traffic through the Strait of Hormuz has dwindled to 33 vessels from Monday to Thursday this week, data showed, versus 50 in the week-ago period, as markets watched talks between Iran and Oman for signs of progress in reopening the key waterway. Four vessels transited the strait on Thursday, including a very large crude carrier, Nissos Kea, carrying about 2 million barrels of Basrah crude loaded in Iraq, Kpler data showed. Of the rest, two were laden with liquefied petroleum gas and one was a minor bulk carrier. Just six crude oil tankers have exited the strait this week, Kpler data showed. A total of 21 vessels have entered it so far, mostly via the Iranian route. Several Chinese and Indian refiners have sought vessels this week to enter the strait and load crude at Iraq's Basrah Oil Terminal, attracted by steep discounts, shipping sources said. However, no vessels have been fixed so far as shipowners are wary of entering the waterway, they said. Iraq's state oil marketer SOMO offered discounts of close to $30 a barrel for Basrah Heavy and Basrah Medium crude to customers for August loading. Typically, about 130 to 140 ships would transit the strait before Iran closed the waterway after the U.S.-Israeli war began on February 28. A proposed deal between Iran and Oman to give Tehran control over ships entering the Gulf through the Strait of Hormuz is not easily workable because of U.S. sanctions and restrictive insurance clauses on payments, industry sources said. On Thursday, 26 vessels transited the Bab el-Mandeb strait on the Red Sea, up from 19 a day before, Kpler data showed. LSEG counted 28 vessels, using a different tracking system and methodology.

Iran says Hormuz deal with Oman won't fully reopen strait - While Iran and Oman appear to be nearing an agreement to manage traffic through the Strait of Hormuz, Iranian officials are now warning that the deal will not fully reopen the crucial waterway. The news injected fresh uncertainty into negotiations that President Donald Trump previously described positively. Oil prices jumped Thursday following Tehran’s comments. Brent crude, the international benchmark, rose about 4 percent to over $82 per barrel. Prices previously had fallen about 8 percent after the Trump administration expressed optimism over talks. The status of the strait, through which a fifth of the world’s oil travels, has emerged as one of the most contentious issues between Iran and the United States. Iran effectively closed the waterway, which connects the Persian Gulf to the Indian Ocean and the wider world, days after the United States and Israel launched their war in February. Now, as the Trump administration pushes Iran to allow traffic through the choke point to return to prewar levels, Tehran is using its hold to extract further concessions. When Iran and the United States agreed in June to halt fighting and begin peace talks, it was the deal’s vague language regarding the strait that caused it to collapse. Iran and Oman, a U.S. ally, have agreed that incoming ships will enter through Iranian territorial waters and outgoing ships will exit through Omani waters, Tehran has said. Such an arrangement would formalize Iranian control of the waterway. It’s unclear whether the Trump administration would accept it. “Any temporary routes will be without any impediments — meaning no approvals or permissions and no tolls or charges,” a U.S. official told The Washington Post. “The Strait of Hormuz is an international waterway, and no party controls the lanes or the ability to transit through them.” The official spoke on the condition of anonymity under rules set by the administration. Trump threatened Tehran Sunday with “the biggest attack since World War II” but said the following day he had decided to give diplomacy more time.On Monday, Trump said the talks were Iran’s “last chance” at a deal; on Tuesday, he said “a lot of progress has been made.”Iran has denied being in direct talks with the United States. The negotiations with Oman, Tehran says, are independent of Washington.The discussions were “approaching the final stage,” Iranian Deputy Foreign Minister Kazem Gharibabadi said Wednesday, but he cautioned that Tehran still has outstanding demands.The United States must end its blockade of Iran’s ports, address sanctions it imposed on Tehran after the truce collapsed, resume talks over Iran’s frozen assets and address continued violence in Lebanon, where Hezbollah, a Tehran proxy, is fighting with Israel, Gharibabadi said, according to Iran’s state-run Islamic Republic News Agency.“This understanding does not mean the complete opening of the Strait of Hormuz, but rather a new and different model,” Gharibabadi said. Under the new setup, he said, “a significant part” of ship traffic would pass through Iranian waters. Iran and Oman also discussed “the establishment of a joint coordination center between Iran and Oman to direct maritime traffic,” Gharibabadi said, in which the neighbors would obtain “the necessary information from vessels that want to enter and exit.” There was no mention of charging fees or tolls in the summary the IRNA published of Gharibabadi’s remarks. Maritime law forbids countries from imposing tolls for the use of a naturally occurring strait, but Iranian officials said during previous stages of the conflict that they would look to charge a service fee. In the talks with Oman, Reuters reported Wednesday, Iran is seeking fees of between 5 and 7 percent of the price of a ship’s cargo. If traffic returned to prewar levels, such a system could generate $52 million per day, or $19 billion in the first year, according to Gregory Brew, a senior analyst with the Eurasia Group. Over time, Brew noted, traffic is expected to decline as more countries build out pipelines and other infrastructure that will allow them to bypass the strait.

ADNOC Reports 15 Vessel Attacks as Hormuz Risks Mount -Abu Dhabi National Oil Company said attacks on its vessels and employees are having a significant impact on operations as the company tries to keep crude, gas and refined products moving through the Strait of Hormuz. Fifteen ADNOC vessels have been hit by missiles or drones since the war began, including three this week, the company said Friday. One crew member has been killed and 20 others injured. The Strait of Hormuz carried roughly one-fifth of global oil consumption before the U.S.-Israeli war against Iran expanded into a broader regional conflict. Repeated attacks on commercial vessels have disrupted traffic through the waterway, driven freight costs sharply higher, and made some shipowners reluctant to enter the Persian Gulf. ADNOC said it is working with authorities to protect personnel and assets while meeting customer requirements “as much as possible” in what it called an exceptionally challenging operating environment. The attacks are hitting one of the few Gulf producers that has managed to restore exports close to pre-war levels. The UAE has relied on crude loading points outside Hormuz, including Fujairah, while continuing to move some barrels through the strait despite the security risk. ADNOC is expanding its own shipping capacity even as those risks increase. Its logistics arm announced Friday that it had acquired six very large crude carriers and five very large gas carriers for about $1.3 billion. Nine of those vessels are scheduled to enter service this quarter, with two newbuild gas carriers due in the fourth quarter. ADNOC Logistics & Services already owns more than 340 vessels and operates another 600 chartered ships. The fleet additions are intended to support higher crude and LNG exports as ADNOC expands production and trading volumes. The company also ordered four new LNG carriers last month in a $900 million deal. “Freedom of navigation and the safe, uninterrupted passage of commercial shipping through international waterways must be respected and protected,” ADNOC said Friday.

Tankers Are Being Blown Out of the Water. See How Mideast Strikes Are Piling Up. – WSJ -- Crew members on the tanker ship heard a loud bang. Dark smoke rose from the front of the vessel, which was loaded with methanol and sailing in the Persian Gulf. “Go go go go go go! Lower the life raft, and get dressed quickly!” someone shouted in a combination of Chinese and English. Roughly half of the crew descended onto a life raft, ready to abandon the ship. The JV Innovation, a Marshall Islands-flagged oil tanker hit in May, was one of 67 commercial ships that have been attacked or boarded in the Middle East since the Iran war started, according to data from the Washington Institute for Near East Policy think tank. At least 17 seafarers have been killed and dozens more injured in the regional maritime attacks. The attacks on commercial ships have been among the most devastating during wartime in a generation. Most of the attacks have originated from Iran, but the U.S. has launched attacks on and boarded more than a dozen ships that violated the Trump administration’s naval blockade. Iran’s maritime deterrence strategy centers around an extensive arsenal of antiship cruise missiles. Many are deployed on mobile truck-mounted launchers or concealed within hardened underground coastal missile bases. Because these missiles cost only a fraction of the multimillion-dollar interceptors required to destroy them, they impose a significant financial burden on defending naval forces. Flying yards above the sea surface, they hide from radar and complicate interception. Iran’s allies are now threatening the world’s third-busiest shipping route - "The Red Sea is closing" - My take This time, it's around Yemen, where the Houthi rebels have These attacks have sent insurance premiums and freight rates to record levels. According to insurance broker Marsh, insurers are becoming increasingly reluctant to underwrite voyages through the region. The fighting has made it hard for insurers to recover costs when ships are hit. Typically, the lead marine insurer—the primary underwriter that takes the largest share of an insurance policy—would arrange for salvage operations. But that isn’t an option for now, said Sundeep Khera, head of marine at U.K. insurer Beazley. A tugboat, the Mussafah 2, was sent to salvage a sunken container ship, but was hit itself on March 6, killing four seafarers and severely injuring another three. “There are very few salvage companies willing to do it,” said Khera, a former captain.

UAE Says Iran Attacked ADNOC Vessel With Missile in Strait of Hormuz - (Reuters) – The United Arab Emirates on Saturday condemned what it said was an Iranian attack on a carrier linked to its state oil company as it passed through the Strait of Hormuz, accusing Tehran of “acts of piracy”. State ‌news agency WAM initially reported ADNOC as saying one of its vessels had been targeted by a missile early on Saturday and that the situation was under control. The UAE Foreign Ministry later condemned what it called “the hostile Iranian attack” on an ADNOC vessel. Neither statement gave details on the tanker, its cargo or possible damage. ⁠No injuries were reported. About a fifth of the world’s oil and liquefied natural gas passed through the narrow waterway between Oman and Iran prior to the conflict. Since the U.S.-Israeli war on Iran broke out on February 28, shipping has been repeatedly disrupted, raising freight rates and creating security concerns. The ministry said the attack violated a U.N. Security Council resolution on freedom of navigation and accused Iran’s Revolutionary Guards of “acts of piracy” by targeting commercial shipping and using the waterway as a tool of economic pressure.

Threat to oil tankers in Middle East worst since start of Iran war, analysts say - The threat to ships carrying oil in the Middle East is at its worst since the Iran war started, experts have said, after a spate of attacks on another key route in the region. The warning comes after a number of attacks on vessels in the Red Sea, an alternative waterway that some tankers had been using since Iran blocked the Strait of Hormuz. Iran has denied Donald Trump's claim that it was in talks with the US over reopening the strait, but said it was speaking to Oman about securing the shipping lane. "In terms of threat to the trade of crude, we're at the worst period that we've been in since this since this crisis began," said Matthew Wright, an analyst at ship-tracking firm Kpler. The number of ships passing through the Strait of Hormuz was just eight on Sunday and 11 on Saturday, compared with more than 100 per day before the war began, according to Kpler. Before the conflict, about 20% of the world's oil and gas passed through the strait. The temporary peace deal with the US struck in early June led to numbers rising again, but the resumption of strikes between the two countries roughly a month later have significantly reduced traffic. Many ships have been "going dark" when crossing the strait, meaning they turn off their transponder to avoid detection. For much of the war, some ships carrying oil from Saudi Arabia had instead passed through an alternative shipping lane in the Red Sea, between the kingdom and northeast Africa. But a recent spate of attacks by Yemen's Houthi fighters on Saudi tankers using the alternative waterway has further heightened the risks. Map of the Middle East and northeast Africa highlighting major global shipping routes through three key maritime chokepoints. Purple lines show shipping lanes connecting the Gulf, Arabian Sea, Red Sea and Mediterranean Sea via the Strait of Hormuz between Iran and Oman, the Bab al-Mandab Strait between Yemen and the Horn of Africa, and the Suez Canal in Egypt. Countries labelled include Iran, Saudi Arabia, Oman, Yemen, Egypt, Sudan, Eritrea, Ethiopia and Somalia, with Kharg Island marked in the Persian Gulf. An inset map shows the region's location within the wider world. The Iranian-backed Houthi militia announced what it called a blockade on Saudi Arabia's Red Sea ports on 20 July and the UK Maritime Trade Operations ⁠agency has reported several attacks on ships in the past week. "Not only is the ongoing situation in the Strait of Hormuz constraining oil flows, but now a big factor that was helping to balance the market is now also under threat. It's a problem stacked on top of a problem," Wright said. Tim Wilkins, the managing director of Intertanko, a trade body representing tanker owners, said the industry was "facing a broadening, deteriorating, and increasingly complex security situation". "We now have the high-risk area going up to Saudi Arabian waters and extending into parts of the Red Sea. So that's having another impact on the market, on freedom of navigation as well." The number of commodity vessels that passed through the Bab el-Mandeb strait was 28 on Saturday and six of them had their transponders turned off, according to Kpler data, indicating that they were trying to avoid detection. Not all vessels are deterred from passing through because the Houthi threat is only targeted at Saudi shipping, with the total number sitting at about 50% of pre-attack levels. But the number of ships loading crude oil for export to Asia passing through has dropped to about four per day, Kpler added, the lowest point since the start of the war. A spokesperson for Hapag-Lloyd, the global shipping giant, said some of its vessels were still passing through the Red Sea but that it would "monitor developments closely and will adjust the network if circumstances change". "If the Strait of Hormuz reopened, most ships could probably leave the region fairly quickly. However, restoring normal cargo flows would take much longer. "Services have been suspended and ships redeployed elsewhere, so a return to normal flows would most likely take three to four months." Despite the talks with Oman, Iran has said that no deal is imminent that would reopen the strait to normal traffic. Its foreign ministry ministry spokesman Esmaeil Baqaei said any agreement would not lift the current restrictions while US "aggression" continued. Kpler's Wright said that while talks with Oman could be productive, any deal would need the involvement of the US and the fear is that current negotiations could be a "false start" without concessions on at least one side. Nonetheless, oil prices fell sharply after Trump said he would cancel planned strikes on Iran based on the potential for upcoming talks. Brent crude was trading 4.4% lower at $84.05 a barrel, after it fell as much as 7.3% to $81.55 a barrel earlier in the day. Peter Sand, chief analyst at Xeneta, another ship-tracking company, said the fighting had taken the shipping industry "back to to square one" and that things were in "a terrible state, regardless of which shipping type you're you're looking at". "The alternatives for getting cargo, whether that's hydrocarbons or container shipping, are really not great… it is really still troubling times with no clarity and no change of fortunes within sight."

Iran Says Hormuz Stays Closed Until U.S. Meets Six Sweeping Demands - -- Iran has effectively rejected expectations of an imminent reopening of the Strait of Hormuz, laying out sweeping conditions that would require the United States to fundamentally change its policy toward Tehran. In a statement issued by Mohammad Baqer Zolghadr, secretary of Iran's Supreme National Security Council, Tehran said the strait would remain closed until Washington ends what Iran described as its hostile behavior. The six demands include an end to U.S. threats and military action, a permanent end to the war, withdrawal of U.S. naval and air forces from around Iran, compensation for war damages, sanctions relief and the release of frozen Iranian assets.The statement is significant because it indicates that the much-discussed U.S.-Iran draft agreement does not, at least from Tehran's perspective, amount to a deal to reopen Hormuz. Any agreement would ultimately require approval from Iran's Supreme National Security Council.The shipping data also points to continued disruption. Just 33 vessels transited Hormuz from Monday through Thursday, down from 50 during the same period the previous week, while only six crude tankers have reportedly cleared the strait outbound so far this week. The decline comes despite expectations that Iran and Oman were close to an arrangement governing a shipping corridor.That uncertainty has kept the energy market on edge. Iran has also been considering restrictions on U.S. and Israeli vessels, while previous proposals for transit fees have added another layer of uncertainty. The European Union has already accused Iran's IRGC Navy of enforcing a screening and toll system for vessels using the strait.Washington, however, is presenting a considerably more optimistic picture. Vice President JD Vance said the U.S. expects oil and gas flows from the Gulf to eventually return to pre-war levels. He also said Iran had told Washington it had no plans to impose tolls, although the U.S. does not fully trust Tehran's assurances.That leaves the market facing two very different interpretations of the same negotiations. Washington is talking about restoring normal energy flows. Tehran is demanding major political, military and financial concessions before reopening Hormuz.For oil traders, the key question is therefore no longer simply whether talks are taking place, but whether the two sides are actually negotiating the same outcome.

Houthi attacks on Bab el-Mandeb raise fresh threat to global shipping - Yemen's Iran-backed Houthi rebels have claimed responsibility for a series of deadly attacks this week, deepening tensions with Saudi-backed Yemeni forces and raising fears of a wider regional conflict. The attacks have killed dozens of civilians and troops, and also targeted Saudi tankers moving from Red Sea ports through the Bab el-Mandeb Strait into the Gulf of Aden. Which Wealth Management Firms Ranked Highest in 2026? Which Wealth Management Firms Ranked Highest in 2026? smartasset.com · Sponsored call to action icon The latest violence has also increased concern over disruption to a key shipping route. Though less significant than the Strait of Hormuz, Bab el-Mandeb has carried around 12 per cent of world trade, including a fourth of global container traffic, linking Europe and Asia through Egypt's Suez Canal. Shipping data published this week by analytics firm Kpler showed fewer tankers have passed through the strait since the attacks. The escalation has built over weeks. The Houthis declared a blockade on Saudi-linked ships leaving the strait, saying it was in retaliation for the yearslong Saudi siege on Yemen and recent attacks on the Houthi-controlled capital. Yemen researcher Afrah Nasser said the recent moves reflected how Iran "is scaling up pressure on the United States in Yemen through its close ally". In an analysis for the nonprofit DAWN on Friday, she wrote: "The escalation is directly connected to regional developments." Among the latest incidents was a Houthi attack in north-eastern Yemen on Friday morning. On Thursday, another attack injured 11 civilians, including a four-year-old child, according to the Saudi military. Other attacks on Saudi-backed military camps in eastern Yemen killed at least 17 soldiers, according to SABA news agency, which is affiliated with Yemen's internationally recognised government. Houthi spokesman Nasruddin Amer said on X on Friday that the group would continue targeting any Saudi buildups in an effort to lift the kingdom's blockade on Yemen. Experts say even sporadic attacks could severely disrupt movement through Bab el-Mandeb by increasing security risks and insurance costs. Iran has shown in the Strait of Hormuz that repeated attacks on ships can effectively shut a critical waterway. Analysts have warned that if ships begin avoiding Bab el-Mandeb as well, two of the world's most important maritime routes would be under strain, adding to pressure on commercial shipping and global oil supplies. Since the start of the Iran war, Bab el-Mandeb has acted as a pressure release valve, with more tankers using it while the Strait of Hormuz has been under threat. Three Houthi officials told The Associated Press in July that the group had been planning for months how to disrupt shipping in the strait. They spoke on condition of anonymity because they were not authorised to speak to the media. The Houthis do not control the stretch of Yemen's coastline along Bab el-Mandeb, but they hold territory less than 100 kilometres away. Beyond Bab el-Mandeb and the Strait of Hormuz, options for exporting Gulf oil and gas are limited, including pipelines across the Arabian Peninsula, routes through the Suez Canal, or the longer and costlier journey around South Africa's Cape of Good Hope. Yemen's civil war began in 2014 when the Houthis seized Sanaa and much of northern Yemen, forcing the government into exile. Saudi Arabia then led an international coalition against the rebels and imposed an air and sea blockade on Houthi-held areas, though that had eased in recent years. The Houthis say their effort to close Bab el-Mandeb to Saudi traffic is meant to break the coalition's blockade. Ahmed Nagi, a senior Yemen analyst at the International Crisis Group, said the move also serves Iran at a time when the US has resumed daily airstrikes. "From Iran's perspective, opening additional pressure points across the region gives it more leverage," he told the AP last month. "The Houthis provide Tehran with influence over one of the world's most important maritime choke-points." The latest Houthi attacks have therefore added to the risks around Yemen's war, regional tensions and global shipping, with the Bab el-Mandeb Strait again emerging as a major flashpoint.

Six Saudi tankers turn away from Aden, ship-tracking data shows - Six Saudi-flagged supertankers have changed course in + in recent days and are heading to southern Africa, amid threats by Yemen’s Houthi fighters to target Saudi Arabian shipping, ship-tracking data cited by the Reuters news agency shows. The empty tankers returning from destinations in Asia were sailing in formation towards southern Africa, rather than opting to transit the southern Red Sea through the Bab al-Mandeb chokepoint, according to AIS ship-tracking on LSEG and MarineTraffic. Shipping in the Red Sea has faced renewed disruption in recent weeks after Yemen’s Iran-aligned Houthis declared a naval blockade on Saudi Arabia and subsequently attacked Saudi vessels, raising the threat for commercial traffic and contributing to higher oil prices. The Houthi movement says the move is in response to Saudi Arabia’s siege on the territory it controls...

Saudi Arabia braces for attacks on ports and airports by Iraqi militias working with Iran-backed Houthis - Saudi Arabia is bracing for a “multiple coordinated attacks” by Iraqi militias factions and Iran-backed Houthis, a Saudi official told CNN, as the broader Middle East conflict threatens to widen. The official cited “multiple intelligence reports” from Saudi Arabia, the US and regional countries indicating some Iraqi militia members, “in coordination with the Houthis” are planning to attack the Gulf nation “in the very near future” under the guidance of Iran’s Islamic Revolutionary Guard Corps (IRGC). The reports of impending attacks come a day after the Houthis claimed responsibility for an attack on a Saudi oil tanker in the Gulf of Aden, a key shipping route. In the past few weeks, Saudi Arabia has come under missile attacks from the Houthis in Yemen and drone attacks from Iran-backed militias in Iraq. The official expressed alarm on Thursday, saying the reports came as Saudi Arabia was pursuing de-escalation and negotiations involving Iran appeared to be heading in the right direction. “Saudi Arabia will take all necessary measures to deal with any aggression,” the official said. The Saudi official said Saudi Arabia had detected meetings involving Iraqis, Houthis and some IRGC members, as well as the movement of drones and missiles. The official suggested the planned attacks were intended to derail progress in negotiations and might indicate a power struggle within Iran itself. “I think they want to coordinate attacks from both north and south,” the official said. The potential targets were “mostly civilian and economic installations,” the official added, identifying energy facilities, ports and airports but providing no further details. Despite the reports, the official said Saudi Arabia would continue its de-escalation efforts and contacts with Iraqi authorities. The official declined to disclose details of their responses. Shortly after the official’s statement, the Saudi-led coalition said that 11 civilians were injured Thursday in a Houthi attack in southern Saudi Arabia near the border with Yemen. Seven of those wounded were Saudi nationals, including a woman and a 4-year-old child who suffered second-degree burns. A Yemeni national, two Egyptians and a Pakistani were also injured. “The terrorist Houthi militia carried out these terrorist attacks using indiscriminate shelling against civilian objects,” the coalition statement read. On Friday, Saudi Arabia, Turkey and Pakistan will hold a summit in Mecca, Islam’s holiest city, where a joint defense agreement it expected to be announced, according to regional sources. Saudi Arabia led a military coalition that intervened against the Houthis in Yemen in 2015 but failed to dislodge the group from the country’s north. The seven-year conflict helped create one of the world’s worst humanitarian crises.

Yemen's Ansar Allah Announces Attack on Saudi Airport - Yemen’s Ansar Allah, also known as the Houthis, announced on Tuesday that its forces targeted a “sensitive site” at the Najran Airport in southern Saudi Arabia using a drone. AFP reported that the airport’s main radar was hit and that services were suspended following the attack. Ansar Allah military spokesman Brig. Gen. Yahya Saree said the attack came in response to the “Saudi enemy’s violation of Yemeni airspace over the Saada and Hajjah governorates with its drones.”Saree added that the Yemeni Armed Forces “affirmed to the Saudi enemy that any violation of our airspace will not go unanswered and unpunished.”Also on Tuesday, India reported that an Indian commercial vessel was struck by a projectile in waters near Yemen and that the ship sank, but the crew was able to safely evacuate. Ansar Allah has been targeting Saudi-linked shipping in the area as part of its new maritime blockade, but so far the group hasn’t taken credit for the attack.Ansar Allah imposed the blockade on Saudi Arabia in response to Saudi airstrikes that targeted the Sanaa International Airport in Yemen, a US-backed attack that shattered a fragile ceasefire between the two sides that had held relatively well since 2022.The two sides have traded several strikes since then, and Ansar Allah has targeted multiple ships, forcing other vessels to start the long journey around Africa to go to the Mediterranean Sea and enter the Red Sea through the Suez Canal. There are signs that the Saudis are planning a major escalation in Yemen, though Bloomberg reported on Tuesday that Riyadh is also pursuing diplomacy to contain the conflict.

Report: Saudi Arabia Seeks To Contain Renewed Yemen Conflict Through Diplomacy - Saudi Arabia is seeking to contain its renewed conflict with Yemen’s Houthis, officially known as Ansar Allah, through diplomacy, Bloomberg reported on Tuesday, amid a new Yemeni blockade targeting shipping on Saudi Arabia’s Red Sea coast. The report said that Saudi Arabia has held talks with Ansar Allah through Omani mediators but is still preparing military options if diplomacy fails. The Guardian reported last week that Riyadh was preparing for a major escalation, which could potentially include a ground offensive.The conflict between the Saudis and the Houthis reignited last month when Saudi Arabia bombed the Sanaa International Airport to prevent a plane from landing that took off from Iran. The plane was carrying a Yemeni delegation that had attended the funeral of Ayatollah Khamenei and safely landed in the Yemeni Red Sea port city of Hodeidah following the Saudi strikes in Sanaa. US officials have claimed that the plane was also carrying weapons and IRGC advisors.Ansar Allah announced a maritime blockade on Saudi Arabia following the strikes on the Sanaa airport, calling the policy a “blockade for a blockade.” The US-backed Saudi/UAE war against Ansar Allah from 2015 to 2022 involved a blockade on Yemen’s sea ports and airports, and while it was eased following a 2022 ceasefire, it was never fully lifted.The Bloomberg report said that in the talks with the Saudis, Ansar Allah is seeking a lifting of all restrictions on the entrance of goods and people in the areas under its control, which is where the majority of Yemenis live. The report also said that Ansar Allah is seeking payment for Yemeni civil workers.The payment of civil workers in northern Yemen was supposed to take place as part of the first phase of a peace deal negotiated in 2023, but it was never implemented. US sanctions imposed on Ansar Allah, specifically the re-designation of the group as “Specially Designated Global Terrorists,” blocked the payments as part of punishment from the Biden administration over Yemeni attacks on Israeli-linked shipping, a response to Israel’s genocidal war in Gaza.The report from Bloomberg on Tuesday said that Saudi Arabia wants to respond to Ansar Allah’s blockade and attack without getting sucked back into the war. It also said that the US was discouraging Saudi Arabia from launching a major military retaliation over concerns it would lead to the total closure of the Bab el-Mandeb Strait, though President Trump did give the green light for strikes in Yemen before the Saudi attack on the Sanaa International Airport.In the meantime, Ansar Allah continues its attacks on Saudi Arabia, announcing on Tuesday that its forces targeted an airport in southern Saudi Arabia.

Ansar Allah Launches Attacks Targeting Saudi-Backed Forces in Central Yemen - - Yemen’s Ansar Allah, also known as the Houthis, launched significant strikes on Thursday targeting military camps in central Yemen belonging to the Emergency Forces, an anti-Houthi force recently created by Saudi Arabia that operates under the command of the Saudi military. A military source within the Saudi-backed Yemeni government, whose leadership is based in Riyadh, told China’s Xinhua news agency that the Ansar Allah attacks targeted camps in the eastern Hadhramaut and Marib provinces and that at least 35 fighters were killed. According to the Defense Line, a Yemeni military analysis site, the Emergency Forces adopted the name last year and consist of 35,000 fighters, mostly Salafis from northern Yemeni provinces, and they operate directly under the command of the Saudi Joint Forces. In a statement on the attack, Ansar Allah described the Emergency Force camps as “Saudi enemy troops concentrations” and said that forces were being built up for an escalation against the “liberated provinces,” referring to Ansar Allah-controlled Yemen, which is where the majority of Yemenis live. The statement claimed that hundreds of “Saudi mercenaries” were killed and injured by the attacks.“The Yemeni Armed Forces warn the criminal Saudi enemy against any act of aggression against our country and our people, and it will bear the consequences of any escalation,” the Ansar Allah-led Yemeni Armed Forces said. “We advise those misled and deceived among our people to leave the Saudi enemy camps and return to their homes before it is too late.” The attack comes a day after Ansar Allah launched attacks on two Saudi oil tankers as part of its enforcement of a new blockade it imposed following Saudi airstrikes on the Sanaa International Airport, which Riyadh carried out to prevent the landing of a plane from Iran. The plane, which ended up landing in Yemen’s Red Sea port city of Hodeidah, was carrying a Yemeni delegation that attended the funeral of Ayatollah Ali Khamenei, and US and Saudi officials have claimed it was also carrying weapons and IRGC advisors. Ansar Allah also targeted the Najran Airport in southern Saudi Arabia this week, which reportedly took out a radar and suspended services at the facility. According to a report from Bloomberg, Saudi Arabia has been pursuing diplomacy to contain the conflict in Yemen, which reignited after a four-year ceasefire due to the strikes on the Sanaa airport, but Riyadh is also preparing for a major military escalation, which could include a ground offensive, if diplomacy fails. The Bloomberg report said that the US was advising against major military retaliation in response to the Ansar Allah blockade on Saudi ports over concerns that it could lead to the complete closure of the Bab el-Mandeb Strait, but President Trump did give Saudi Crown Prince Mohammed bin Salman the green light to escalate against the Houthis before the strikes on the Sanaa airport. Saudi Arabia’s military is highly reliant on US support, meaning MbS will want US backing before any further escalation.

Israeli Attacks Massacre 17 Palestinians Across Gaza Despite Hamas Agreeing on Disarmament Plan - - Israeli strikes pounded Gaza on Sunday, killing at least 17 Palestinians, one of the highest daily death tolls in months, as the IDF has escalated its attacks despite Hamas agreeing to a disarmament plan that was first announced by President Trump.Multiple children were among the victims on Sunday, including Azzam Abu Taif, a five-year-old, who was killed alongside his father and his pregnant mother by an Israeli strike that hit a residential building in Gaza City, according to Al Jazeera.Medical sources at Nasser Hospital told Al Jazeera that a couple and their young daughter were killed by an Israeli strike on an apartment in Khan Younis, southern Gaza. A child was also killed by an Israeli drone attack on a tent in Gaza’s City’s western Remal neighborhood. Israeli strikes also pounded central Gaza, where at least four Palestinians were killed.A day earlier, Israeli forces killed eight Palestinians and bombed medical warehouses attached to al-Aqsa Martyrs Hospital in central Gaza, according to Gaza’s Health Ministry. The ministry said the attack “resulted in the complete destruction of two out of four warehouses at the targeted site, in addition to causing severe and extensive damage to two other warehouses.”The heavy Israeli attacks came after the so-called “Board of Peace” unveiled what it said was a 15-point plan to implement the Gaza peace plan announced by President Trump on Truth Social on Thursday night. The agreement calls for the halt of all attacks as it’s being implemented, but so did the October 2025 ceasefire deal signed by Hamas and Israel in October 2025, which Israel has violated with constant attacks that have killed at least 1,230 Palestinians since it was signed.Under the new deal, Hamas has agreed to hand over its weapons to a Palestinian technocratic committee, known as the National Committee for the Administration of Gaza, which will also take over governance of Gaza. But Hamas officials have maintained that the step will be taken only if Israel actually ceases its attacks in Gaza and withdraws its troops back to the “yellow line,” and there’s no sign Israel has actually agreed to the deal despite the announcements from Trump and the BoP.“The agreement is a package,” senior Hamas official Ghazi Hamad told CNN on Friday. “We will not begin any weapons-related steps until Israel implements these commitments. Frankly, if Israel does not implement them, we will not proceed.”Israeli Energy Minister Eli Cohen said on Sunday that Israel wouldn’t halt attacks and that the Israeli security cabinet hasn’t even discussed Gaza over the past three days. About one month ago, Cohen vowed that Israel would eventually take over all of the Gaza Strip.

Israel's Smotrich Repeats Call for Netanyahu To Approve Establishment of Three Jewish Settlements in Gaza - - Israeli Finance Minister Bezalel Smotrich on Sunday repeated his call for Israeli Prime Minister Benjamin Netanyahu to approve the establishment of three Jewish settlements in the Gaza Strip, as senior Israeli ministers continue to speak openly about their plans for permanent Israeli control of the Palestinian territory.Smotrich made the call in a post on X, in which he referenced the withdrawal of settlements from Gaza and from an area of the northern West Bank, which he calls “northern Samaria,” a policy known as the “disengagement.” Israel is re-establishing the settlements in the northern West Bank, and he is calling for the same in Gaza.In the post, Smotrich referenced the upcoming Israeli elections, warning that a “left-wing” government won’t expand settlements as aggressively.“Before us stands the choice, between a right-wing government that will continue the momentum of construction and expand it, and a dangerous left-wing government that openly declares its intention to evacuate settlements and outposts and to promote a ‘political agreement,'” Smotrich said.“And from northern Samaria – to Gaza! The Settlement Administration under my leadership is prepared to establish 3 settlements in the northern sector of the Gaza Strip, and I call on the Prime Minister to give the green light to the move. Together we correct the sin of the disengagement,” he added.Smotrich also holds a ministerial position in the Israeli Defense Ministry, where he oversees the Settlement Administration. He first announced in June that the body had drawn up plans for three settlements in Gaza and was just waiting for the green light from Netanyahu. Israeli Defense Minister Israel Katz, a member of Netanyahu’s Likud party, has also said that Israel will establish three “Nachala outposts,” a type of settlement that starts as a community for IDF soldiers with the goal of establishing a permanent civilian presence.

Mass Funeral Held in Gaza for 112 Palestinians From the Same Family Killed by Israeli Airstrikes in 2023 -- Thousands of Palestinians in Gaza City on Tuesday held a mass funeral for 112 members of the Abu Sharia al-Hassaina family, a well-known and respected clan that has been nearly wiped out by Israel’s genocidal war, the Palestinian news agency WAFA has reported. The bodies of the 112 Palestinians mourned on Tuesday were recovered from the rubble in Gaza City’s Sabra neighborhood, where they were buried by Israeli airstrikes that collapsed entire residential buildings in November 2023. Photos show the bodies draped in Palestinian flags during the funeral.Ali Abu Sharia, an elder and surviving member of the family, said the 112 people buried on Tuesday included 44 children, 37 women, 23 elderly people, and seven persons with disabilities. A total of 308 members of the family have been killed by Israeli attacks, including 267 who have been buried and 41 whose remains are still missing.Mahmoud Basal, spokesman for Gaza’s Civil Defense, detailed in comments to Reuters how the bodies were identified. “The bodies were decomposed. Relatives identified some through their clothes, injuries and distinguishing marks. Some victims had bone fixation plates on some ⁠organs, while some women were identified through jewelry they had on or necklaces bearing their names,” he said.The recovery of bodies from the rubble in Gaza is a painstaking effort since the US and Israel continue to block the entry of construction equipment. The work can only be done in the areas of Gaza not occupied by the IDF, and this area has been shrinking as Israeli troops have taken more territory in recent months, a clear violation of the October 2025 ceasefire deal. “If we had at least 10 excavators, bulldozers, and cranes needed for the work, the job could be completed in three months,” Basal said.According to numbers released by Gaza’s Health Ministry on Tuesday, 804 bodies have been recovered from the rubble since October 2025. At the time of the signing of the ceasefire agreement, Gaza rescue workers estimated that around 10,000 Palestinians were missing and presumed dead under the rubble.

Israeli Lawyer Says All Palestinians Living in Villages Around His West Bank Settlement Should Be Killed - An Israeli lawyer who lives in an illegal settlement in the Israeli-occupied West Bank has told the BBC that all the Palestinians living in villages around his settlement, the Havat Gilad outpost, should be killed, and said that one Jewish life is worth 10 million Palestinian lives.Yehuda Shimon made the comments in reference to a security guard from the outpost who was killed during a settler attack on Tal, a nearby Palestinian village. Four Palestinians and one other Israeli were killed during the confrontation, which came as settler violence against Palestinians in the West Bank is at an all-time high. “I think now after they kill one Israeli people, we need to kill all the people in Tal and Sarra, even Jit and Farata,” he said. “Why? Because we don’t want it to happen again.”The BBC reporter, Lucy Williamson, said it sounded like Shimon was saying one Jewish life was worth thousands of Palestinian lives. “[No], million,” Shimon responded. “One Jewish life, it’s ten million, ok?”Williamson said Shimon sounded racist, to which he answered in the affirmative, claiming Jews had the biblical right to the land. “Yes, I know, I know. But this is the truth. Because God choose us. Because of this, you are jealous,” he said.The idea that Jews have the God-given right to the West Bank is shared by US Ambassador to Israel Mike Huckabee, a Christian Zionist, who said earlier this year that Israel had the right to all of the land between the Euphrates and Nile rivers, sparking a diplomatic incident.

Drone Strike Hits Türkiye-Bound Vessel in Black Sea - --A Türkiye-bound cargo ship was struck by a drone off Russia’s Black Sea coast, prompting the evacuation of all 22 crew members, with three reported to be potentially seriously injured, according to Türkiye’s maritime authority. The Cameroon-flagged roll-on/roll-off ship Nadezhda was attacked on Aug. 3 about 20 nautical miles off Novorossiysk while sailing to the northern Turkish port of Samsun, the Directorate General of Maritime Affairs said, Hurriyet Daily News reported. The crew included 13 Turkish nationals. All those aboard were taken safely to Novorossiysk Port by Russian vessels. Initial assessments found damage to the ship’s living quarters and bow, while a fire continued on board. The directorate said a salvage operation could not be carried out because the risk of further drone attacks in the area remained. It did not identify who was responsible for the attack.

Drone attacks reduce July CPC oil loadings by a fifth - Drone attacks in the Black Sea took out a fifth of Caspian Pipeline Consortium (CPC) oil loadings in July, four sources familiar with the data said, as the Russia-Ukraine war spilled over to hit Kazakhstan's and western oil majors' sales. CPC loadings fell more than 20% behind July's schedule to around 1.2 million to 1.3 million barrels per day (bpd) after drone attacks near the Black Sea export terminal disrupted supplies, the sources said. The reduced loadings meant the loss of some 400,000 bpd of CPC Blend oil for international markets in July, adding to the disruption to at least 10 million bpd through the Strait of Hormuz - together accounting for about 10% of global supply. The CPC pipeline, which transports crude from Kazakhstan to Russia's Black Sea port of Novorossiysk, accounts for about 2% of global oil supply. Operations at the CPC terminal have been repeatedly interrupted since mid-July. Oil loadings were suspended again on Friday morning after briefly resuming on Thursday, two sources said. The tanker Oneiroi, that was loaded on Thursday, was expected to sail on Friday if operations at the terminal resume, one of the sources said. Another vessel, Mareta, was set for loading on Friday. According to data from analytics firm Kpler and two sources, CPC Blend crude loadings have averaged about 1.1 million to 1.2 million bpd so far in August, indicating that exports remain below the reduced July level as disruption persists. Kazakhstan, which relies heavily on the CPC route for its crude exports, experienced a 14% drop in oil production in July from June, according to the sources. Major Western oil companies operating in Kazakhstan include Chevron and ExxonMobil. Russia's Foreign Ministry said that Ukrainian forces had attacked oil tankers during loading operations at the CPC terminal and accused Kyiv of trying to destabilize global oil markets. Kyiv has stepped up its strikes on Russian energy infrastructure but Ukraine has not claimed responsibility for, nor commented on, the drone attacks on the facilities that handle predominantly Kazakh crude. CPC declined to comment on the July and August loadings. It has not publicly commented on the latest disruption. Kazakhstan has few alternative export routes capable of replacing CPC volumes - typically around 1.5 million to 1.7 million bpd - making the pipeline critical for the country's oil sector and government revenue.

Italian-led EU force boards sanctioned tanker from Russia's shadow fleet in Mediterranean (Reuters) - An EU naval mission led by Italy boarded a tanker from Russia's so-called "shadow fleet" on Sunday, the second such operation in less than two weeks as Europe intensifies scrutiny of vessels suspected of helping Moscow circumvent oil sanctions. Italy's Defence Ministry said the Toa Payoh, a tanker subject to EU sanctions, was intercepted west of the Sicilian island of Pantelleria while sailing from Benin to Istanbul. The vessel had switched to a Cameroon registry only last week, according to a source familiar with the operation. Maritime authorities launched the inspection to verify that the tanker was legally entitled to fly the Cameroon flag and that its registration documents were valid. The source said the EU naval mission, named operation EUNAVFOR MED Irini, did not have the authority to seize vessels during such inspections, meaning the Toa Payoh was not detained. However, documentation gathered during the boarding was still being examined and could be used by national authorities for a subsequent sequestration if necessary. The Toa Payoh's captain initially failed to cooperate with the EU mission, prompting a team of Italian military personnel to board the vessel from a helicopter launched by the Thaon di Revel, the EU's EUNAVFOR MED's flagship. The inspection, carried out with the support of a Greek vessel and a Polish maritime patrol aircraft, lasted about two hours and was completed safely, the ministry said. There was no immediate comment from Russia. Sunday's operation follows the July 20 boarding of the MV South Star, another tanker linked to Russia's shadow fleet that was inspected by Irini forces over suspicions it was sailing also under a false flag. The European Union has imposed sanctions on scores of vessels that it says form part of a "shadow fleet" used by Russia to circumvent restrictions on its oil exports since its invasion of Ukraine.

Ukraine strikes more oil facilities deep inside Russia, Zelenskyy says - The Hindu -Ukraine hit more oil facilities deep inside Russia in overnight attacks, President Volodymyr Zelenskyy said Thursday (August 6, 2026), as Kyiv kept up its campaign to undermine Moscow's wartime economy and embarrass the Kremlin. The repeated strikes have caused fuel shortages and rattled Russians. Ukrainians, meanwhile, are enduring regular barrages that Kyiv's depleted air defences are struggling to counter amid Moscow's 4-year-old full-scale invasion. The Kyiv region observed an official day of mourning Thursday (August 6, 2026) after a Russian missile and drone blitz killed 17 people the previous day, prompting an increasingly urgent scramble by Ukraine and its partner countries to find new air defense supplies. In the first six months of this year, 1,396 civilians were killed and 7,978 injured in Ukraine, the United Nations office in Kyiv said Wednesday (August 5, 2026). That was a 37% increase from the same period last year and a 114% jump over 2024, it said, attributing the rise to more long-range aerial attacks by Russia. Mr. Zelenskyy said he met with senior officials on how to accelerate the development of Ukraine's own ballistic weaponry, similar to its swift wartime innovation in drone technology. “Developing one's own ballistic capabilities and creating a new anti-ballistic system is a task that only a tiny minority of countries worldwide have managed to accomplish,” he said in a social media post. “Ukraine has this capability.” Mr. Zelenskyy said he expects the programme to produce results this year and next after it overcomes “key challenges,” including procuring critical components, technological cooperation with partner countries, and choosing where to build the armaments.

Ukrainian Drone Attacks in Russia Hit Oil Refineries, Kill at Least Two Civilians - - Ukraine launched another major drone swarm into Russia on Thursday, killing at least two civilians and hitting two oil refineries, attacks that came after a day of major Russian missile strikes in Kyiv. Yegor Kovalchuk, the acting governor of Russia’s Bryansk Oblast, said that the two civilians were killed by Ukrainian attacks on towns in the region, which borders Ukraine. He said that one of the attacks hit a car, killing the driver and injuring five others.In Russia’s Yaroslavl Oblast, which is about 160 miles northeast of Moscow, the governor, Mikhail Evraev, reported the “largest ever attack by enemy drones,” saying that 93 targeting the region were intercepted, The Irish Times reported.Russia’s Defense Ministry reported that its forces shot down more than 600 drones over multiple Russian regions and the Black and Azov Seas.Evraev said that oil storage tanks were hit by falling debris, and photos from the region show large plumes of black smoke following the attack. Ukrainian President Volodymyr Zelensky also claimed an attack on an oil refinery in Ufa, the largest city in Russia’s Bashkortostan, which is over 800 miles from the Russian border, though it hasn’t been confirmed by local authorities. While Ukraine has been able to repeatedly strike Russian oil infrastructure in attacks that are supported by US intelligence, Reuters reported on Thursday that Russia’s oil output rose slightly in July. The attacks also haven’t had an impact on the front lines, where Russian forces continue to hold the momentum and are slowly making gains.

Focus on Fracking

Monday, August 10, 2026

record distillates exports leaves summer supplies at a 30 year low; SPR at new 43 year low, US oil supplies at 42 year low

Strategic Petroleum Reserve is the lowest since February 18, 1983; total of all US oil supplies are the lowest since March 30th, 1984….gasoline supplies at a 37 week low; distillates exports at all time high leaves distillate inventories at the lowest summertime level in thirty years

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Monday, August 10, 2026

record distillates exports leaves summer supplies at a 30 year low; SPR at new 43 year low, US oil supplies at 42 year low

Strategic Petroleum Reserve is the lowest since February 18, 1983; total of all US oil supplies are the lowest since March 30th, 1984….gasoline supplies at a 37 week low; distillates ​exports at all time high leaves distillate inventories at the lowest summertime level in thirty years

Followers

About me

Strategic Petroleum Reserve is the lowest since February 18, 1983; total of all US oil supplies are the lowest since March 30th, 1984….gasoline supplies at a 37 week low; distillates exports at all time high leaves distillate inventories at the lowest summertime level in thirty years