Oil Is Flowing From Hormuz Again—Just Not the Kind the World Needs Most — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil down 1% at $99.37 a barrel.

--European benchmark gas is down 0.1% at 75.60 euros a megawatt-hour.

--Copper futures are up 0.1% at $14,413 a metric ton.

--Gold futures are up 0.9% at $4,194.80 a troy ounce.

TOP STORY:

Oil Is Flowing From Hormuz Again--Just Not the Kind the World Needs Most

Ships are ferrying almost as much crude oil out of the Strait of Hormuz as they were before the Iran war. But they are barely moving any barrels of the fuel the world needs most: diesel.

For now, the distinction is paramount in American politics. President Trump's team has explored a long list of options to arrest the skyrocketing price of diesel fuel, which factors into the cost of groceries, gadgets and just about everything else moved on semitruck beds.

OTHER STORIES:

Saudi Arabia's East-West Pipeline Oil Flows Reach 5.8 Million Barrels a Day, Energy Minister Says

Saudi Arabia's oil flows through its key East-West pipeline have reached 5.8 million barrels a day as of Tuesday after drone attacks forced the kingdom to shut it down in mid-September, Saudi Energy Minister Prince Abdulaziz bin Salman said.

"Within five or six days of the East-West Pipeline being targeted, we began using it," the minister said Tuesday at the Made in GCC 2026 Forum and Exhibition in Bahrain, according to Saudi state television.

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Exporters to Get Extra Year for EU's Methane Emission Rules, Von Der Leyen Says

Exporters are set to get an extra year to get to grips with incoming European Union methane emission rules, European Commission President Ursula von der Leyen said as companies struggle with high fuel costs.

Von der Leyen told EU lawmakers on Tuesday that the move would save additional costs during a crisis period.

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Oil Prices Fall as Middle East Exports Recover, Shipping Risks Persist

Oil prices fell Tuesday as traders assessed recovering Middle East crude exports against fresh shipping incidents around the Strait of Hormuz and renewed fighting near the Bab al-Mandeb Strait.

December Brent crude futures fell 0.4% to $99.88 a barrel, while December West Texas Intermediate futures fell 0.8% to $87.54 a barrel.

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Norsk Hydro Expects Further Hit From Gas Supply Challenges at Brazilian Alumina Plant

Norsk Hydro said it expects a further financial hit in the fourth quarter following gas supply challenges at its alumina refinery in Brazil.

The Norwegian company said in August that it had temporarily cut alumina production at the Alunorte plant by 50% due to gas shortages, with the lower production coupled with buying more expensive gas on the open market resulting in a potential hit of $75 million to $100 million in the third quarter.

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NYSE Owner Launches Gold Futures in London

Intercontinental Exchange, owner of the New York Stock Exchange, launched a new gold futures contract in London, seeking to establish a derivatives market in the world's leading physical bullion hub.

The contract, which began trading Monday alongside new futures for silver, platinum and palladium, gives investors a way to hedge gold exposure directly in London, a key trading hub with more than $180 billion in over-the-counter volumes per day.

MARKET TALKS:

Trump 'Red Diesel' Order Provides Limited Benefit to Farmers -- Market Talk

1121 ET - President Trump's executive order temporarily allowing the use of red-dyed tax-free diesel by truckers who would normally use a taxed product is seen as having a limited benefit for U.S. farmers struggling with rising input costs. Red-dyed diesel is already being used by farmers to power farm machinery like tractors and combines, so the savings really goes to farmers transporting their harvests via trucks. But there's a way for this to backfire on farmers, says Jim Wiesemeyer of Ag Bull in a note. "Opening those inventories to additional highway customers could also increase competition for supplies at rural distributors during harvest," he says. Corn rises 0.9%, soybeans are up 0.9%, and wheat climbs 0.3%. (kirk.maltais@wsj.com)

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Big Trucking Fleets Unlikely to Use 'Red Diesel' Tax Deferral -- Market Talk

1106 ET - Large trucking operators probably won't take advantage of the federal tax deferral for on-road use of dyed diesel given the complications, GasBuddy's head of petroleum analysis Patrick De Haan says on X. "Interstate trucking means a patchwork of state rules and tax headaches, and most major truck stops don't sell dyed diesel," he says. For most diesel users the deferral of the 24.4 cents a gallon excise tax won't change much at the pump, he adds. "Big fleets will likely sit this out." (anthony.harrup@wsj.com)

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U.S. Diesel Tax Break a 'Band Aid' Measure -- Market Talk

1047 ET - U.S. diesel futures are lower after President Trump signed an order allowing temporary on-road use of dyed-red diesel with the corresponding federal excise tax deferred through the end of the year, and the deferred payment possibly later eliminated. "Red diesel" is untaxed for off-road use such as in farming and construction. The latest measure that seeks to reduce prices for truckers "appears to be adding to today's shift in diesel futures leadership back to the downside and away from the upside," Ritterbusch & Associates says in a note. But the measure "appears to be another band aid" as the diesel problem is driven mainly by disrupted supply through the Strait of Hormuz, the firm adds. Nymex diesel is off 2.6% at $4.4295 a gallon. (anthony.harrup@wsj.com)

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Cattle Starts Higher as Trading Stays Rangebound -- Market Talk

1032 ET - Live cattle futures on the CME are up 0.5% in early trading, with the most-active contract seen as rangebound. In a note, AgResource says that trading is expected to be steady-to-weaker for cattle, this after cattle futures posted two consecutive losing days and dipped under the $2.20/lb mark. Trading has been locked within a range of $2.19/lb to $2.23/lb in recent sessions, according to data from FactSet. However, boxed beef prices turned higher on Monday, something which typically gives futures support as well. Lean hog futures are trading down 1.2%. (kirk.maltais@wsj.com)

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U.S. Natural Gas Futures Extend Gains -- Market Talk

1024 ET - U.S. natural gas futures are higher for a third straight session. "Nymex natural gas continues to find support from production weakness and searing late-season Western heat," Eli Rubin of EBW Analytics says in a note. Weather support may slip in the near term with the demand from cool Northeast weather and heat in the West set to fade, along with risk of a tropical storm developing in the Gulf, he adds. Natural gas for November delivery is up 1.9% at $3.124/mmBtu. (anthony.harrup@wsj.com)

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Slide in Corn Crop Condition Lifts Futures -- Market Talk

0915 ET - The USDA's Crop Progress report showed a 3-point decline in the condition of the U.S. corn crop--falling to 54% good-or-excellent this week. The size of the move is unusual for this time of year, analysts say. "The current crop is only a point ahead of 2023, which finished as the worst-rated crop since 2012," says Matt Zeller of StoneX in a note. Soybean crop conditions fell by one point to 57% good or excellent. Pressuring both crops is wet weather seen in the Corn Belt last week, which prevented farmers from getting into fields to harvest and created moisture-saturated soils. CBOT corn is up 0.8%, soybeans rise 0.7%, and wheat climbs 0.8%. (kirk.maltais@wsj.com)

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Oil Futures Extend Decline on Optimism About Flows -- Market Talk

0910 ET - Oil futures are lower for a third consecutive session with the market optimistic about the amounts of crude being shipped out of the Persian Gulf. Improving confidence in near-term supply suggests further declines are likely, but limited by continued geopolitical risk, BankPro CEO Paolo Broccardo says in a note. "Shipping through the Strait of Hormuz still faces constraints, while rising tensions in the Red Sea fuel concerns," he says. The stalemate in U.S.-Iran negotiations "also leaves no clear path towards a full normalization of regional traffic." WTI is down 2.4% at $87.26 a barrel and Brent is off 2.7% at $97.58 a barrel. (anthony.harrup@wsj.com)

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U.S. Corn and Soybean Harvest Behind 5-Year Pace -- Market Talk

0850 ET - The pace of the U.S. corn and soybean harvest is behind the 5-year average, the USDA says in its latest Crop Progress report. As of Oct. 4, the soybean crop is 25% harvested, versus the 5-year average of 33%. Corn is 23% complete, versus a 5-year average of 27%. Wet weather is behind the delays, says Michael Cordonnier of Soybean and Corn Advisor. "Last week was very wet across the Midwest, especially in the state of Iowa where rainfall records were broken for the month of September," he says. "The weather this week looks much dryer, but it is going to take a few days of dryer weather for the seed moisture to decline and the combines to be able to get in the fields." (kirk.maltais@wsj.com)

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European Gas Prices Rise as Low Storage Leaves Market Vulnerable -- Market Talk

0759 GMT - European natural-gas prices rise in early trading as the market remains vulnerable despite a recent recovery in LNG flows from the Persian Gulf. EU gas storage is just shy of 73% full, well below 83% at the same point last year and the five-year average of 88%, according to ING. While injections have exceeded seasonal averages through September, the region is still likely to fall short of storage targets before winter, leaving it exposed to supply disruptions and price volatility. Weather will be key to determining market tightness over the heating season. A strong El Nino could increase the likelihood of a milder winter, easing heating demand and pressure on inventories, analysts at the firm say. The benchmark Dutch TTF contract rises 3.4% to 76 euros a megawatt-hour. (giulia.petroni@wsj.com)

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Gold Edges Higher, But Focus Remains on U.S. Dollar, Yields -- Market Talk

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October 06, 2026 12:04 ET (16:04 GMT)