Why the Real Oil Squeeze Is Happening in Refineries — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 0.8% to $88.43 a barrel.

--European benchmark gas is up 2% to 59.93 euros a megawatt-hour.

--Copper futures are up 0.2% to $14,152.50 a metric ton.

--Gold futures are up 0.5% to $4,439.80 a troy ounce.

TOP STORY:

Why the Real Oil Squeeze Is Happening in Refineries

Oil prices are dominating headlines as geopolitical tensions strain the flow of crude through key global chokepoints. Yet the bigger squeeze in energy markets is unfolding further downstream in the world's refineries, where crude is converted into the fuels that power the global economy.

A series of disruptions--from the Iran war and Ukrainian attacks on Russian energy infrastructure to China's restrictions on fuel exports--has taken millions of barrels of refined products off global markets and left customers scrambling to locate alternative supplies.

OTHER STORIES:

An Oil Refiner That Fled California Is Back-With a Giant Pipeline From Texas

California lost two big oil refineries in the past year, as well as much of the Asian fuel supplies that landed on its coast. Now, a pipeline from Texas is planned to help fill the gap-one that Gov. Gavin Newsom has embraced as the state faces the highest pump prices in the country.

On Tuesday, Phillips 66 PSX and two partners officially sanctioned a $5 billion project, called the Western Gateway Pipeline system, to build a 900-mile pipeline to ferry 230,000 barrels a day of gasoline, jet fuel and diesel from the Texas Panhandle to Arizona and California. In Phoenix, the new pipe will connect with an existing 500-mile pipeline that ends in Colton, Calif., about an hour east of Los Angeles.

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Chicken Surplus Squeezes Poultry Companies; New Food Rules Proposed

Poultry companies today are producing more chicken than consumers can buy, which is weighing down wholesale prices and corporate profits, our WSJ colleague Patrick Thomas reports.

Potential consequences: It sets up potential inflation relief for shoppers and restaurants looking to pare down their costs for protein, Patrick writes. , and Wayne-Sanderson Farms already have been ramping up production of boneless chicken breasts and wings to meet what is expected to be an onslaught of consumer demand.

MARKET TALKS:

Gold Rises Even With Renewed Middle East Tension -- Market Talk

1044 ET - Most-active gold futures are up 0.6%, even after U.S. forces fired on a Panama-flagged ship that attempted to run the American blockade of Iranian ports. Elevated fighting in the Middle East was a factor pressuring gold prices in the past, but that seems to be changing, says Commerzbank in a note. "In recent months, the correlation between gold and oil has mostly been negative, as a rising oil price has also pushed up expectations of Fed interest rate hikes," says the firm. "That has not been the case this time." Gold and oil both finished the day higher on Monday, an unusual move in the course of the Middle East war. (kirk.maltais@wsj.com)

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Eastern Corn Belt Expected to See More Rain -- Market Talk

1014 ET - The Eastern Corn Belt is expected to get more rain this weekend, says the Hightower Report in a note. With hot temperatures all summer, the rainfall moving through Corn Belt states should give crops support to survive and thrive. The rain is coming to states that are already mostly drought-free including Iowa, Illinois, Indiana, and Ohio. In its latest Crop Progress report the USDA said that nationally, topsoil moisture fell two points to 50% adequate-to-surplus as of Aug. 9. Most-active CBOT corn is down 0.4%, while soybeans drop 0.5% and wheat slides 1.4%. (kirk.maltais@wsj.com)

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U.S. Natural Gas Futures Steady in Early Trading -- Market Talk

1006 ET - U.S. natural gas futures are holding on to the previous session's gains made on a hotter near-term weather outlook. "Expectations for stronger consumption in the coming weeks, along with a recovery in LNG feedgas demand, have helped offset an uptick in domestic production and lift prices from recent lows," Andy Huenefeld of Pinebrook Energy Advisors says in a note. While the Midwest and Northeast will likely cool down in coming days, lingering heat across the south should support demand from power generators well into August, he adds. Nymex natural gas is steady at $2.794/mmBtu.(anthony.harrup@wsj.com)

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Cattle Higher as Short-Covering Drives Futures -- Market Talk

0955 ET - Live cattle futures on the CME are up 0.4%, as analysts attribute the rise to short covering, even with funds holding a net long position. If the trend continues, then a breakout may be seen, says AgResource in a note. "Higher closes in the first half of the week could trigger technical buying in the last half," says the firm. Lean hog futures are down 0.1%.(kirk.maltais@wsj.com)

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Oil Turns Lower With Market Watching Hormuz Talks -- Market Talk

0941 ET - Oil futures move lower after Pakistan's defense minister tells Bloomberg that the U.S. and Iran are nearing some sort of agreement. Yemen's Houthis continue attacks on shipping in the Red Sea and the U.S. fired on a ship attempting to evade its blockade of Iranian ports. "It seems the details of a peace deal have become more complicated with Iran demanding the U.S. repay for war damages, and President Trump countering, stating Iran should make financial compensation to the people they have harmed in the past including their own citizens," Dennis Kissler of BOK Financial says in a note. "The reality remains that the Strait of Hormuz traffic remains extremely light, and global fuel supplies (especially diesel) are tightening further." WTI is off 0.6% at $81.62 a barrel and Brent is down 0.8% at $87.02.(anthony.harrup@wsj.com)

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Palm Oil Ends Higher, Tracking Soybean Oil's Strength -- Market Talk

1123 GMT - Palm oil closed higher following strong exports data and soybean oil's gains overnight. Malaysia's Aug. 1-10 palm oil exports are estimated to have risen 9.2% on month, according to cargo surveyor AmSpec Agri Malaysia. Expectations of robust tropical-oil exports to India also boosted prices, Kenanga Futures says in a note. However, investors remain cautious of Malaysia's abundant palm oil supply, which may cap gains, it adds. The Bursa Malaysia Derivatives contract for October delivery rose 24 ringgit to 4,747 ringgit a ton. (sherry.qin@wsj.com)

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Gold Flat Ahead of Key U.S. Inflation Data -- Market Talk

0754 GMT - Gold prices are broadly flat as investors await upcoming U.S. inflation data for more cues on the U.S. interest-rate outlook after weaker-than-expected jobs data led markets to scale back bets for a September hike. In early European trading, futures are flat at $4,417.60 a troy ounce, but remain up more than 6% on the week. The focus has now turned to the U.S. consumer price report due on Wednesday and producer price figures on Thursday. "Markets expect U.S. CPI to rise 0.1% month-on-month in July, and a softer reading following the recent weak jobs report could reduce expectations of further monetary tightening," says Soojin Kim from MUFG. "However, persistent energy-driven inflation remains a key risk as tougher U.S. demands on Iran diminish prospects for a near-term reopening of the Strait of Hormuz." (giulia.petroni@wsj.com)

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Energy Stocks Open Higher as Oil Continues to Rise -- Market Talk

0730 GMT - European energy stocks rise in opening trade as oil continues to gain. Brent extends a four-day rally as tougher U.S. and Iranian demands slow progress toward an agreement that could resume normal shipping through the Strait of Hormuz, MUFG's Soojin Kim writes. In New York, Brent futures rise 1.5% to $89 a barrel and WTI gains 0.8% to $79.13. Norway's Equinor rises 2.4%. In London, BP gains 1.43% while Shell rises 1%. Italy's Eni is up 1.7% and Spain's Repsol ticks 1.5% higher. France's TotalEnergies is up 1.3%. (adam.whittaker@wsj.com)

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Gold Set to Rebound Further Toward $4,500 an Ounce, Daily Chart Shows -- Market Talk

0655 GMT - Gold is poised to rebound further toward key resistance at $4,500 per ounce, based on the daily chart, says Quek Ser Leang of UOB Global Economics & Markets Research in a note. The daily moving average convergence divergence indicator is trending steadily higher, the senior technical strategist notes. The daily declining trendline from February's record high is currently near $4,500 per ounce, the strategist says. A clear break above $4,500 per ounce would indicate the $3,943-per-ounce low will probably be a more durable bottom than currently anticipated, the strategist adds. Spot gold is 0.6% lower at $4,365.20 per ounce. (ronnie.harui@wsj.com)

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Iron Ore Rises Amid Potential Supply Disruptions -- Market Talk

0235 GMT - Iron ore prices are higher in early Asian trade amid potential supply disruptions. More workers have joined a strike at the Port Hedland iron ore export hub in Western Australia, ANZ Research analysts say in a research note. Although vessels continue to load, there are mounting risks of future disruptions, they say. Still, demand in China has continued to be weak with July's trade data showing iron ore imports fell 4% on month, they note. The most actively traded September iron ore contract on the Dalian Commodity Exchange is up 1.3% at 721.5 yuan a ton. (sherry.qin@wsj.com)

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Copper Prices Rise, Supported by Tighter Near-Term Supply -- Market Talk

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August 11, 2026 12:53 ET (16:53 GMT)