Oil Prices Set for Weekly Decline as Saudi Supply Concerns Ease

September 18, 2026 — Oil prices continued to decline Friday, extending a three-session retreat as concerns over disruptions to Saudi crude supplies eased.

Brent crude futures fell $1.65, or 1.6%, to $103.17 a barrel by 1008 GMT. U.S. West Texas Intermediate crude dropped 61 cents, or 0.6%, to $101.30. Brent was headed toward a 1.4% weekly decline, which would be its first weekly loss in three weeks.

The pullback came as traders became more confident that portions of Saudi Arabia’s production and export operations could resume. Saudi Arabia has increased crude shipments through Oman, while inventories of refined petroleum products have climbed in the United States, Singapore and Europe. Rising Chinese fuel exports have also contributed to available supplies.

Customs data showed China’s refined oil product exports rose 12.7% from a year earlier in August, with jet fuel shipments reaching a record high. China is expected to further relax export controls in September, potentially giving refiners greater opportunity to benefit from stronger margins in overseas markets.

However, the oil market remains highly sensitive to developments across the Middle East. Saudi Arabia and Iran-backed Houthi forces in Yemen exchanged new strikes Thursday, adding further uncertainty to the region’s energy supply outlook.

Oil prices had moved toward four-month highs earlier in the week following disruptions to crude shipments from Yanbu, Saudi Arabia’s Red Sea export hub. Riyadh also canceled some deliveries to Europe after an attack damaged the East-West pipeline.

Prices later retreated following reports that Saudi Arabia was working to restore roughly half of the pipeline’s capacity within days. Estimates over when normal crude flows will be fully restored, however, have varied.

Traffic through the Strait of Hormuz also remained limited. Four commodity vessels passed through the waterway Thursday, compared with a 10-day average of about 16. Three liquefied natural gas vessels were reported waiting outside the strait.

Even after the latest declines, oil prices remain above $100 a barrel, leaving energy costs closely connected to geopolitical developments and the outlook for global inflation.