Nymex Overview: Oil Extends Slide as Supply Concerns Ease — OPIS

Oil futures fell for a fourth straight session midday Monday as improving flows through the Strait of Hormuz and efforts to revive U.S.-Iran talks eased near-term supply concerns.

As of 12 p.m. ET, October West Texas Intermediate fell $4.66 to $95.64/bbl, with the November contract down $3.97 at $92.11/bbl. November ICE Brent crude traded $4.11 lower at $99.76/bbl, with December down $3.53 at $95.76/bbl.

October ULSD dropped 19.08cts to $4.867/gal, with November down 17.21cts at $4.6723/gal. October RBOB was trading 2.94cts lower at $3.4982/gal, with the November contract down 5.41cts at $3.2014/gal.

U.S. Central Command said over the weekend that oil and cargo traffic through the Strait of Hormuz during the previous two weeks was at its highest level in six months. Saudi Arabia has been leaning more heavily on Gulf export terminals while its East-West Pipeline remains impaired. The pipeline links Saudi production in the east with the Red Sea port of Yanbu, providing an alternative export route that avoids the Strait of Hormuz.

The Wall Street Journal reported that Saudi Aramco may be able to partially restore the pipeline within days, though technical hurdles remain. Aramco cautioned some European and Asian customers about potential delays or canceled September and October deliveries.

Kpler data show Saudi shipments from Persian Gulf terminals have increased by almost 2 million b/d this month to 2.46 million b/d. Crude transferred between vessels in the Gulf of Oman has also risen by 1.1 million b/d from August to 2.5 million b/d. However, the main facilities handling those transfers, Fujairah in the United Arab Emirates and Sohar in Oman, are operating near their practical limits, Kpler said.

Those routing changes are also tying up crude tankers. About 15% of the world's very large crude carrier fleet is currently off Oman, according to Clarksons Research. More than a dozen Saudi-flagged ships have rerouted around the Cape of Good Hope instead of transiting the Bab al-Mandeb, increasing voyage costs by roughly $1 million per vessel, according to maritime intelligence firm Windward.

Supply risks remain, with Saudi air defenses destroying ballistic missiles targeting Riyadh and other cities over the weekend, according to the Saudi Press Agency. The Wall Street Journal separately reported that an airborne attack hit jet-fuel facilities at King Khalid International Airport in Riyadh, while the Houthis later claimed attacks on Riyadh and Yanbu.

Refined-fuel markets remain tight even as crude prices retreat. Middle East shipping disruptions and reduced Russian refinery operations and diesel exports following Ukrainian attacks are limiting supply. The U.S. national average diesel price reached a record $6.510/gal Monday, up from $3.695 a year earlier, according to AAA.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

Reporting by Allegra Fradkin, afradkin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com

(END) Dow Jones Newswires

September 21, 2026 12:50 ET (16:50 GMT)