Symbolic imageOil tops $110 while diesel and ship fuel stay tight
Oil rose above $110 for the first time since May, Bloomberg reported on Friday. Diesel and ship-fuel markets remain tight despite emergency stock releases.
Bloomberg cited growing supply risk for the price rise. Reuters reported that the US is soliciting an exchange of up to 17 million barrels from its strategic reserve, and the Wall Street Journal reported that diesel prices are holding high despite efforts to boost supply. A second WSJ report said prices fell as traders weighed IEA reserve releases against Hormuz risks. Trader Vitol said the ship-fuel squeeze persists despite more crude coming through Hormuz, according to Bloomberg.
Buyers hedge for winter
Bloomberg reports that South Korea is turning to coal ahead of a feared winter gas squeeze, and that China is building a gas buffer as the Iran war raises risks.
Airlines cut back
Eurowings confirmed on Friday that it is examining temporary short-time work in its German flight operations this winter, citing sharply higher kerosene prices, and is in talks with the Federal Employment Agency. The Lufthansa subsidiary is dropping unprofitable flights from its 2026/27 winter schedule, with Dubai as an example, where demand has not recovered since Iran's attacks on Gulf states.
Refiners profit
ExxonMobil signalled a $4.5 billion boost to refining earnings as margins soar, Reuters reports.