Diesel Buyers Compete for Shrinking Supply Pool — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 0.5% to $91.43 a barrel.

--European benchmark gas is up 3% to 63.64 euros a megawatt-hour.

--Copper futures are down 1.1% to $13,978 a metric ton.

--Gold futures are down 1% to $4,427.90 a troy ounce.

TOP STORY:

Diesel Buyers Compete for Shrinking Supply Pool

Diesel buyers are competing for shrinking supply amid disruptions in Russia and the Middle East, with the U.S. at the center of a scramble that could intensify into the winter.

The squeeze across the global refined-product markets, where gasoline, diesel and jet fuel compete for the same refinery capacity, is pushing prices higher.

The benchmark price for European diesel hit $167 a barrel late last week, compared with about $87 a barrel a year earlier, according to data collected by price reporting agency OPIS, which is owned by Dow Jones. The diesel crack spread in northwest Europe--the premium of diesel over crude--was at around $90 a barrel on Friday compared with an average of $24 a barrel last year.

OTHER STORIES:

Canadian Solar Wins Dismissal of Maxeon Patent Lawsuit Over Solar Tech

Canadian Solar has won a legal victory after a U.S. federal court dismissed a lawsuit brought on by rival solar company Maxeon Solar over module technology.

On Tuesday, Canadian Solar said that Maxeon's patent infringement suit in the Federal District Court has now been dismissed with prejudice, meaning the claims can't be refiled.

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Oil Prices Top $90, Fueled by Renewed Tensions in the Middle East

International oil prices are extending gains after a vessel was struck while leaving the Strait of Hormuz overnight.

The ship was hit by an unknown projectile approximately five nautical miles off the coast of Oman causing one crew casualty, according to the U.K. Maritime Trade Operations center, which is affiliated with the British Royal Navy. The vessel was identified as a Liberia-flagged general cargo ship by maritime security company Vanguard.

MARKET TALKS:

U.S. Natural Gas Edges Up in Range-Bound Trade -- Market Talk

1030 ET - U.S. natural gas futures continue their recent range-bound pattern, falling one day and rising the next, with summer heat-driven demand offset by high production and ample inventories. "Record output and the storage overhang are simply overpowering whatever residual weather-driven power burn is still left in the late-summer schedule," Phil Flynn of Price Futures Group says in a note. "Nothing in the current outlook screams massive incremental power-burn demand." Nymex natural gas is up 0.9% at $2.715/mmBtu.(anthony.harrup@wsj.com)

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Oil Extends Gains As Hormuz Solution Appears Distant

0940 ET - Fading hopes for an agreement anytime soon to resolve the U.S.-Iran conflict keep oil futures buoyant with both sides claiming to have control of the Strait of Hormuz. Shipping disruption remains a concern for crude oil and product supply, with the drawdown in the U.S. Strategic Petroleum Reserve to its lowest level since the early 1980s compounding the unease, Kaynat Chainwala of Kotak Neo says in a note. "Prices stay hostage to Hormuz transit data and any signal from the Iran-Oman channel. Ad durable reopening would cap upside, while further escalation points toward a retest of the $95 to $100/barrel band for Brent." Brent is up 0.2% at $91.09 a barrel. WTI is 0.9%higher at $85.27.(anthony.harrup@wsj.com)

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Higher Energy Prices Could Hurt Eurozone Growth And Euro -- Market Talk

1248 GMT - The rise in energy prices stemming from the Iran war poses a headwind to eurozone growth and the euro, MUFG Bank's Derek Halpenny says in a note. Europe faces a terms of trade hit from a further surge in energy prices, particularly natural gas prices, he says. Europe delayed winter gas purchases after the onset of the war and this appears to be backfiring, he says. Drought across Europe is also affecting food production and boosting energy demand. MUFG estimates that the euro is currently about 2.5%-3.0% overvalued versus the dollar. The euro could underperform if the above factors start to impact sentiment and economic activity, Halpenny says. The euro last trades steady at $1.1574. (renae.dyer@wsj.com)

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Gulf Markets to Focus on Hormuz Shipping, Earnings Calls -- Market Talk

1130 GMT - Gulf markets are likely to remain focused this week on whether negotiations over the Strait of Hormuz translate into a visible improvement in shipping activity, Iridium Advisors says. Higher oil prices are no longer lifting regional markets uniformly, with investors distinguishing between companies benefiting from tighter energy and logistics markets and those exposed to slower trade, travel disruption or margin pressure, the firm says. The final large wave of second-quarter earnings calls should also remain in focus, with 26 scheduled this week before the reporting calendar thins out, Iridium says. (farhan.rafid@wsj.com)

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Brent Crude Expected to Average at $76 Per Barrel by Year-End, BofA Survey

1017 GMT - Investors expect the Brent crude oil price to average at a higher level by year-end than in July, Bank of America's August global fund manager survey shows. Investors in the survey expect Brent oil to trade at $76 per barrel in a weighted average forecast by year-end, up from July's forecast of $71 per barrel, it says. Brent currently trades at $91.04, up 0.2% on the day. (emese.bartha@wsj.com)

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China Back to Buying U.S. Soybeans With Another Flash Sale Announcement -- Market Talk

1015 ET - The USDA says that China purchased 136,000 metric tons of soybeans for delivery in the 2026/27 marketing year, that follows multiple Chinese purchases since the start of the month. Improved demand for U.S. soybeans is giving support as prices rise back over the $12 mark, nearing year-to-date highs. CBOT soybeans are up 1.2%, while corn rises 0.5% and wheat is down 0.3%. (kirk.maltais@wsj.com)

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Palm Oil Ends Higher on Stronger Soybean, Crude Oil Prices -- Market Talk

1008 GMT - Palm oil ended higher on stronger soybean oil and crude oil prices, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Near-term prices are likely to be driven by persistent concerns about extreme weather and El Nino in the coming months, he adds. Ng sees crude palm oil prices support at 4,800 ringgit a ton and resistance at 4,950 ringgit a ton. The Bursa Malaysia Derivatives contract for November delivery closed 39 ringgit higher at 4,860 ringgit a ton. (amanda.lee@wsj.com)

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BP Could Restart Buyback in 2027 -- Market Talk

0933 GMT - British energy company BP could resume buybacks in 2027 as it cuts debt and shores up its balance sheet, Berenberg analysts write. The company will retain its focus on paying down net debt via disposals, they say. The analysts expect more than $6 billion in additional disposal proceeds in 2027, which could give it cash for buybacks, they say. Under current oil and gas price assumptions, Berenberg expects $500 million in quarterly buybacks from the second quarter of 2027, the analysts say. This would deliver a full-year buyback of $1.5 billion for 2027. Shares rise 1.7% to 528.30 pence. (adam.whittaker@wsj.com)

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Equinor's U.S. Power Plant Buy Lifts Exposure to Growing Market -- Market Talk

0749 GMT - Equinor's deal to acquire 87.7% of the Lackawanna gas-fired power plant in Pennsylvania for $940 million increases the company's exposure to the rapidly growing U.S. electricity market, SB1 Markets analyst Teodor Sveen-Nilsen writes. The deal strengthens Equinor's integrated power strategy by combining power generation with its own significant gas operations in the Appalachian Mountains, he says. The market is supported by rising demand from electrification, data centers and industrial operations, he adds. "We view the acquisition of Lackawanna as neutral to positive, but believe that the Equinor share is fully valued unless a long-term oil price of $85-$90 per barrel is assumed." The bank reiterates its neutral rating on the stock with a 365 Norwegian kroner target price. Shares rise 1.6% to 394.20 kroner. (dominic.chopping@wsj.com)

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Gold Slips on Higher Oil, Treasury Yields -- Market Talk

0743 GMT - Gold prices slip, pressured by higher oil prices and higher U.S. Treasury yields, which increase the opportunity cost of holding nonyielding bullion. In early European trading, New York futures are down 0.4% to $4,455.30 a troy ounce. Still, prices have risen more than 10% on the month. "Gold has nevertheless remained supported by renewed investor demand and stronger central-bank purchases, particularly from China," analysts at MUFG say. "Going forward, the Fed's July meeting minutes and Chairman Kevin Warsh's Jackson Hole remarks will be key for the rate outlook." (giulia.petroni@wsj.com)

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Brent Above $90 As Hormuz Deal Prospects Dim

0734 GMT - Brent crude rises above $90 a barrel as prospects for a near-term peace deal to reopen the Strait of Hormuz fade. In early European trading, the global oil benchmark is up 0.1% to $91.04 a barrel, while WTI futures gain 0.5% to $84.95 a barrel. "President Trump indicated little interest in extending the expired agreement with Iran, while major differences remain over Hormuz," says Soojin Kim from MUFG. Meanwhile, shipping security risks remain. Yemen's Iranian-allied Houthi rebels are escalating attacks along the country's Red Sea coast, pushing closer to the key Bab al-Mandeb Strait. (giulia.petroni@wsj.com)

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Middle East Conflict Has Had Big Impact on Cost Environment, BHP Says -- Market Talk

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August 18, 2026 11:19 ET (15:19 GMT)

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