Oil prices declined on Friday, September 18, 2026, extending losses for a third consecutive session as easing concerns over Saudi Arabian supply disruptions offset ongoing anxiety about the widening conflict across the Middle East region. Brent crude futures fell by $2.14, representing a 2% decline, closing at $102.68 per barrel by 0806 GMT. U.S.
West Texas Intermediate futures declined $1.83, or 1.8%, to $100.08 per barrel. Benchmark Brent prices are tracking toward their first weekly loss in three weeks. According to PVM Oil Associates analyst Tamas Varga, immediate concerns over supply tightness have been alleviated by several factors: Saudi Arabia loading additional crude via Oman, a build in oil product inventories in the United States, Singapore, and Europe, plus increased fuel exports from China.
Varga stated that while pre-weekend profit-taking cannot be excluded, the current fundamental outlook would not justify a prolonged fall below $100 per barrel basis Brent. Markets largely disregarded concerns even as Saudi Arabia and Yemen's Iran-backed Houthis exchanged fresh strikes across their border on Thursday, broadening the Middle East war front. Earlier in the week, prices had climbed to near four-month highs after sources reported that crude loadings at Saudi Arabia's Red Sea export hub of Yanbu had been suspended and Riyadh cancelled certain deliveries to Europe following damage to its East-West pipeline from an attack.
However, prices have declined since reports emerged that Saudi Arabia was seeking to restore approximately half the capacity of its East-West oil pipeline within days. Sources consulted by Reuters have provided varying estimates regarding the timeline for pipeline reopening and return to normal crude flows. Chinese refined oil product exports in August rose 12.7% year-on-year, with jet fuel exports hitting record levels, according to customs data released Friday.
China is expected to continue easing export controls in September to capitalize on higher overseas margins. Priyanka Sachdeva, head of market insights at Phillip Nova, emphasized that the critical question involves whether physical flows can normalize and the potential timeline. She noted that a sustained improvement in Hormuz traffic could enable further unwinding of the geopolitical premium.
Transporting oil through the region remains hazardous. Iran's Revolutionary Guards Navy reported that a Togo-flagged oil tanker was struck while attempting "illegal passage" through the Strait of Hormuz on Thursday, according to Iranian state media on Friday. The United States and Iran have held no peace talks since the collapse of an interim agreement reached in June.
The war will be discussed at the United Nations General Assembly next week, with an Iranian delegation permitted to attend according to the U.S. State Department. Source: Reuters reporting by Seher Dareen in London, Sethuraman NR in New Delhi, and Arathy Somasekhar in Houston, published by Marine News Magazine/MarineLink.
Source: marinelink.com