Oil prices declined on Friday, September 11, 2026, after experiencing substantial weekly gains driven by geopolitical tensions in the Middle East. However, crude benchmarks remained elevated, with both Brent and West Texas Intermediate futures positioned for significant weekly advances. As of 6:27 a.m.
ET, Brent crude oil futures, the global benchmark, were trading down 3.58% to $103.78 per barrel, while West Texas Intermediate futures fell 2.17% to $99.23 per barrel. The pullback came after robust Thursday trading, where Brent crude peaked at approximately $108 per barrel and WTI exceeded $104 per barrel. Despite Friday's decline, the weekly performance remained robust.
Brent futures were on course for a weekly gain of 8.4%, positioning the contract to close above the critical $100 mark for the first time since mid-May. WTI's week-to-date gain stood at 9.2%. Friday's retreat ended five consecutive days of gains for Brent crude and snapped an eight-day winning streak for WTI.
Market dynamics are being shaped by escalating Middle East tensions and concerns regarding a prolonged conflict. According to reporting from the Wall Street Journal, top White House advisors have discussed with President Donald Trump the possibility that the Iran conflict could extend beyond his current term, contradicting previous statements from Trump that the conflict would conclude following the U.S. midterm elections in November, with corresponding declines in oil and gas prices. Geopolitical developments are heavily influencing crude valuations.
Jim Reid, analyst at Deutsche Bank, noted that "geopolitical fears are driving everything" in Friday morning commentary. Recent concerns center on Red Sea shipping safety following the capture of Yemen's port city of Mokha by Houthi rebels. The strategic location near the Bab el-Mandeb Strait raises concerns regarding potential disruptions to Saudi oil exports.
Additionally, Saudi Arabia's oil output has declined to its lowest level since 1990, adding supply concerns to the market equation. Tamas Varga, an analyst at PVM Oil Associates, emphasized the critical question facing investors: whether the current supply deficit is structural or transitory in nature. While Varga acknowledged that further price spikes are possible and revisiting the April peak of $126 per barrel remains feasible as global and regional oil inventories continue to decline, he noted that elevated prices typically reduce demand.
He pointed out that contemporary oil markets exhibit greater elasticity compared to the 1990 Gulf War period, with renewable energy sources proving "more than capable" of replacing certain petroleum applications, particularly in electricity generation. Varga concluded that the gap between global oil supply and demand will narrow either through increased supply following a ceasefire or through reduced demand driven by expanded alternative energy utilization. While further oil price strength is likely in the interim, he suggested it would be surprising if elevated prices persisted beyond 2026.
Source: CNBC, September 11, 2026
Source: cnbc.com