West Texas Intermediate crude futures on the New York market closed lower on Friday, September 18, with the October contract falling $1.61, or 1.58%, to settle at $100.30 a barrel, after China acted on a request from Saudi Arabia by urging Iran to limit Houthi rebel attacks on Saudi oil infrastructure, easing some concerns about risks to key Middle East oil export routes. Meanwhile, the November Brent crude contract fell $0.95, or 0.91%, to settle at $103.87 a barrel. Data from AAA showed U.S. retail diesel prices at $6.45 a gallon, a record high, and IIR Energy estimated that U.S. refining capacity in operation is likely to fall by 371,000 barrels per day next week. JPMorgan said that for the first time since the U.S.-Israeli war with Iran began in February, the bank has no clear fundamental view on the oil market. The Strait of Hormuz remains largely blocked, with only four cargo ships passing through on Thursday, compared with a 10-day average of about 16 vessels. Oil prices had earlier surged close to four-month highs after crude loadings at Saudi Arabia's Yanbu export terminal were suspended, with Saudi Aramco telling at least two European refining customers that they would not receive crude deliveries next month after the East-West pipeline was damaged in an attack. Three pumping stations serving the pipeline were damaged, one more than previously estimated, and Saudi Arabia is racing to restore the East-West pipeline's transport capacity to about half within the next few days. The United States and Iran have held no further peace talks since a temporary agreement reached in June collapsed, and the U.S. State Department said the war issue will be raised at next week's United Nations General Assembly meeting, which an Iranian delegation is scheduled to attend.
JPMorgan Chase & Co
