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Saudi Arabia restarts East West oil pipeline, according to sources
Three sources informed on the issue said that Saudi Arabia had restarted operations at its East-West Pipeline. Exports could resume?from the Red Sea port of Yanbu later today. Saudi Arabia was forced to close its East-West Pipeline after drone attacks on September 13 halted crude loading at the Yanbu port in the kingdom. Traders said that the resumption in supplies on Tuesday fueled selling on global oil markets. Brent crude futures dropped by over $2 per barrel to their lowest level since September 8. OPEC’s largest oil exporter, since disruption of oil flows through the Strait of Hormuz after the U.S. and Israeli war against Iran has used the pipeline?to reroute approximately 4 million barrels a day -- around 4% - of global supply -- to Yanbu. Two sources confirmed that the pipeline had a slow pumping rate following its restart. One of the sources said that Saudi Aramco, the state oil company, was aiming to pump 4 million barrels a day. Saudi Aramco didn't immediately respond to our request for comment. One?of?the?sources? said that the pipeline would resume crude supply to Aramco refineries on the Red Sea Coast. They also added that one cargo is scheduled to be loaded at Yanbu on Tuesday evening. One?source said it was bound for China. Two other?trading sources reported that traders were preparing for Saudi oil loads by moving tankers from?Egypt’s Mediterranean Port Said to Sidi Kerir for ship-to -ship transfers.
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Saudi Defence Fund accelerates maritime sector drive following Houthi Advance
MASNA Ventures is Saudi Arabia's first venture capital fund devoted to defence. It aims to invest more in local manufacturing of US defence?technology and that of its allies, as the Gulf conflict exposes the region’s military gaps. Lucien Zeigler, the General Partner of the fund, said that it was anchored by an important Saudi family office, and is sharia compliant. The Capital Markets Authority has been asked to increase its capacity from $100 million to $150 million. Zeigler declined to comment further on the amounts or investors citing regulations. He said: "This is a wager on Saudi sovereignty and we want Saudis that believe in this sector to share in the gains." Zeigler stated that the firm was accelerating its collaboration with "prime original equipment manufacturers" and startup unicorns, "whose connected and autonomous platforms were designed for what is happening in Gulf and Red Sea". He refused to identify the companies citing non-disclosure contracts. The term Prime Manufacturers refers to large defence companies such as Lockheed Martin or Boeing. 'MARITIME IS a Priority' MASNA's main focus is on autonomous systems, including unmanned aerial vehicles and surface and underwater vehicles. Zeigler stated that "Maritime is a top priority... We are actively accelerating this domain right now." PitchBook reports that venture capital firms invested in defense tech worldwide $19.4 billion this year, which is double the amount they did last year. Saudi Arabia will record VC deals of about $200 million by 2026, according to the data platform. Zeigler spent the majority of his 15-year career in Saudi Arabia, working with Saudi business and US businesses, as well as venture capital, defense, and investment. He was previously the head of Middle East and North Africa Operations at Silicon Valley’s Pilatus venture capital. MASNA has partnered up with SR2 Defence Systems - a local manufacturer founded by Zeigler - to develop advanced defence technologies on Saudi soil. The fund aims to invest in three joint ventures for operational purposes and six capital investments by 2026. Zeigler stated that MASNA has led a funding round which is?three-times oversubscribed. It has already backed a venture between SR2 & US drone maker Vector Defense, which is "ramping now up." Zeigler said that the firm plans to support another joint venture which will produce?anti-drones systems built on "world-leading US technology for hard-kill." Drones played a key role in the Houthi war in Yemen, and in the wider Gulf conflict that involved Iran, the United States and their allies. Saudi Arabia 'was attacked by Iran-backed groups who threatened its oil exports in recent weeks. A new Houthi presence at the Bab el-Mandeb strait could further disrupt Red Sea shipping routes. Zeigler stated that drones and air defence are the most important things at this time. The events of the past week have highlighted these needs.
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Sources say that traders are pushing for lower prices for Venezuelan crude oil, as shipping costs have risen.
Five sources said that global?oil traders Vitol and Trafigura want to offer steeper discounts for Venezuelan crude oil, as the rising freight rates are reducing their margins. The two merchants houses are?among?the biggest winners in the race to control Venezuelan crude flows, since the US seized then-President Nicolas Maduro and began to push to reactivate Venezuela's oil industry in January. The US has imposed severe sanctions on Venezuela's energy sector until recently, but the current negotiations for lower prices show the difficulties of operating in this volatile sector. The sale prices of the Merey heavy grade, the country's most popular crude oil, have steadily recovered this year after being slashed by sanctions up until 2025. As more traders and buyers enter the market, punishment clauses such as charging extra to load tanks in countries with high security risks have disappeared from contracts. The return of large vessel owners has also helped 'bring prices in line with market standards. The recovery of the oil industry is under threat as the cost of transporting oil by tankers has reached record levels in recent weeks, following the largest wave?of attacks against shipping since the US/Iran war began late February. One source said that the state oil company PDVSA recently agreed on prices between $12 and $13 per barrel below Brent, with joint venture partners. These partners were then forced to sell the crude at a discount of $16 to the benchmark due to market conditions. In an effort to increase cash flow and profits, the state-owned company recently attempted to sell more crude oil directly to refineries. Sources say that Trafigura, Vitol, and other companies are bidding 18 to 20 dollars below Brent on cargoes headed for the US and Europe. They claim to be doing this to cover the rising costs of freight, and to put further pressure on PDVSA. Venezuela informed OPEC that the formula price of Merey (or maximum price it could fetch if market conditions were met) increased from $67.36 a barrel to $76.82 a barrel in August, up from $67.36. This was about $14 less than Brent. PDVSA Vitol, and Trafigura didn't immediately respond to our requests for comment. SURGE FREIGHT According to Signal Maritime, chartering an Aframax 'tanker that can transport about?700? barrels of crude oil from the Venezuelan Port of Jose to US Gulf Coast costs around $3.5 million or $5 per barrel. This is up from $1.35million or $1.90 barrel at the beginning of the year. "Freight is an issue of great importance." A trading source stated that refining companies don't want to pay the high price. Venezuela's oil output remained virtually unchanged at 1,17 million barrels of crude per day in August as its terminals struggled with larger volumes. Vitol and Trafigura?managed?to keep their export volume stable?at around?597,000bpd?, compared with 604,000bpd?in July. The?number and average waiting time of the tankers that are lining up for loading have remained the highest since January, posing a possible roadblock to the US plan to boost quickly the South American nation's oil exports.
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Iran is ready to reopen Strait of Hormuz, if US lifts the blockade and eases its military pressure
A senior Iranian official said on Tuesday that Iran could reopen the Strait?of?Hormuz in seven days, if the United States eases their military pressure and lifts the 'blockade' of Iranian ports. Iran's central military command announced on Sunday that it had been informed by the US that they were preparing to resume military operations, with the help of countries in the region. They warned this could lead to Tehran retaliating "without limits?and without considerations". The senior Iranian official stated that the US should announce its desire to resolve this?issue diplomatically. It must make it official and agree on a timetable for the process to move forward. The official said that Masoud Pezeshkian of Iran, who arrived in New York from Tehran on Tuesday, would not be meeting Donald Trump, President of the United States, at the UN headquarters. Tehran's proposal to?end hostilities? with the US was delivered to Washington via mediators in September 16, according to an?Iranian government official. The official said that the UN General Assembly was a great opportunity for Washington to "return to diplomacy". He added that Tehran would welcome the revival of diplomacy, if Washington took concrete steps.
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Sinograin to hold second soybean auction in September ahead of Trump-Xi Summit
Sinograin, China's state-owned stockpiler, announced its second large auction of imported soybeans for September just days ahead _of a Washington summit between US President Donald Trump & Chinese President Xi Jinping. National Grain Trade Centre announced in a notice that the auction will take place at 1:30 pm CST (0530 GMT), next Monday. It will include?514,000 tons of soybeans grown between 2022 and?2024. Mysteel, a consultancy, said that Sinograin sold 62.4% (543,000 tons) of the imported soybeans offered at an auction held on Tuesday. This was its first large-scale sales since late August. Sinograin held five auctions between July and August. Each auction offered more than 200,000 tonnes of imported soybeans. The sales were said to be aimed at releasing storage space for the expected arrival of US soybeans. China has now reached the half-way mark in 'fulfilling' its commitment to purchase 25 million tons US soybeans. The White House claimed that this deal was signed last October. The traders hope that the leaders' meeting this week will provide greater clarity about China's future demand for US soybeans.
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Private equity, foreign investors fuel Aussie M&A activity in 2026
Private equity firms and foreign investors have shown a lot of interest in Australian companies so far in 2026. However, only a few of these approaches have progressed beyond the initial stages. This list includes some Australian companies which have been approached by takeover bidders this year. Atlas Arteria: Atlas Arteria, an Australian company, received a takeover bid from the IFM Global Infrastructure Fund in April. The fund valued the former at A$6.89billion ($4.91billion) for the shares it did not hold at the time. Diamond Infraco 1 offered a sweetener to shareholders at the time. It said the price of shares would increase to A$5.10 if the fund secured a stake of 45% or more in the company. BlueScope steel: Early January, BlueScope Steel in Australia received a takeover offer of A$13.15billion ($9.37billion) from an investor consortium that included billionaire Kerry Stokes' SGH and US-based Steel Dynamics. The steel producer rejected the offer in late February. They said that the price was too low for them to recommend an arrangement scheme. However, they left the door wide open for future discussions. Cleanaway Waste Management: Cleanaway Waste Management in Australia received a?A$9.4 billion ($6.70billion) takeover bid from EQT Infrastructure mid-August, and the company granted it exclusive due diligence. EQT Infrastructure, a Swedish investment company, is responsible for managing EQT Infrastructure. FleetPartners: FleetPartners, based in Australia, said that it had received revised 'takeover bids' from SG Fleet and ORIX, a Japanese company, as well as a Sumitomo-led consortium, mid-September. The revised offers valued the firm up to A$982.1m ($701.22m). The vehicle leasing company added that its board decided to give?SG Fleet and ORIX, as well as the Sumitomo Consortium, access to a second phase of due diligence. IDP Education IDP Education in Australia said that it rejected a takeover offer from Blackstone worth A$694.7 million ($492.89 millions), saying that the proposal "substantially underestimated" the company. Blackstone Singapore offered A$2.50 in cash per share on September 9, representing a premium to the closing price of the stock on September 8. IDP stated that the board deemed the proposal as "highly opportunistic", considering current industry challenges, and its multi-year transformation program. Ingenia Communities: Ingenia Communities, a private equity firm based in the US, rejected an offer of A$1.94bn ($1.39bn) from Warburg Pincus early this month. The bid was deemed to be undervalued by the Australian company. Warburg Pincus also stipulated that Peet, the developer of master-planned communities, must terminate the $711 million acquisition deal. Lynas Rare Earths: Early this year, Lynas rare Earths, the world's biggest producer of rare earths outside China, was in takeover discussions. However, these were highly uncertain, and they did not progress, according to a spokesperson in early September. Perpetual: Perpetual, a Swedish buyout company, was granted limited access to due diligence by Perpetual in order to consider a potential 'improved' offer. In August, the company announced that it had signed a nondisclosure contract with Windflower Pte (an entity believed to be controlled indirectly by Sweden's EQT AB) to see if a better proposal could be formulated. Reliance Worldwide Reliance Worldwide has agreed to a $2.9 billion purchase mid-September by global investment firm Brookfield. This is a respite for the Australian Plumbing Supplies company, which is facing the impact of US Tariffs and economic uncertainty. Steadfast: Steadfast, an Australian company, accepted a $5.50 billion A$7.7-billion ($7.7-billion) bid from a consortium backed by KKR in late August. Amwins Group, a distributor of specialty insurance, and Dragoneer Investment Group, a broker, will each take control of their respective underwriting and broking businesses. Suncorp: The Financial Times reported in?late August that Japanese insurer Tokio has identified Australia's Suncorp after reviewing various potential takeover targets, citing sources familiar with the issue. Reports said that sources had warned of ongoing discussions and the fact that there was no guarantee a deal would be reached. Suncorp refused to comment on this report.
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South Korea's US Investment Package takes shape with Texas nuclear power plants and projects
South Korea and the United States have finalised implementation of Seoul’s $350 billion investment pledge under a trade agreement struck last year, which lowered US tariffs to 15% on South Korean products. 150 billion dollars of the $350 billion are earmarked to shipbuilding. Details for the other $200 billion strategic investments have yet to be worked out. South 'Korea’s Industry Ministry told lawmakers on Tuesday that President Donald Trump will make a final statement. The plan is still awaiting review by the US Government Investment Committee and further negotiation with US Commerce Secretary Howard Lutnick. According to South Korean legislators and media reports, the following details are provided on the various projects currently being discussed. TEXAS GAS FIRED POWER PLANT The first project identified under the investment package will be a combined-cycle gas plant of more than 6 gigawatts in Encinal (Texas) to provide electricity to AI data centers and semiconductor plants. South Korea's Industry Ministry said Seoul plans to spend more than $20 billion on the project. It is expected to yield returns of $43 billion to $40 billion over a period of 20 years. According to Yonhap News Agency the Industry Ministry told lawmakers that South Korea will provide all funding for this project, while ownership of the project would initially be divided equally between both countries. According to Yonhap, US officials want a long-term ownership model whereby the US would own 90% and South Korea 10%. The project is the first to be confirmed as part of the larger investment package, according to lawmakers. WESTINGHOUSE STAKE: EIGHT NUCLEAR Reactors Seoul and Washington have discussed the construction of eight large nuclear reactors within the United States. According to Korea Economic Daily, and other media outlets, nuclear energy could represent a large portion of the total investment package. The industry ministry briefed lawmakers on the current discussion, which includes six reactors using Westinghouse AP1000 technology as well as two using South Korea APR1400 designs. The APR1400 would be the first South Korean designed reactors to be built in the United States. Separately Seoul is in negotiations to purchase a stake of the US nuclear company Westinghouse. The lawmakers said that discussions about a 5%- 10% stake are still ongoing. According to Yonhap, the industry ministry informed lawmakers that South Korea will retain voting rights with a stake that size in Westinghouse. According to Korea Economic Daily, the value of an investment could range from $15 billion to $20 billion depending on Westinghouse’s valuation before a planned IPO. A 15% stake would be worth between $2.25 and $3 billion. Westinghouse is owned by Canadian asset managers Brookfield and their partners, with 51% of the equity. Canadian uranium miners Camco holds 49%. ALASKA LIGNA PROJECT A second project that is being discussed is South Korea's participation in the Alaska Liquefied Natural Gas Project, which has been stalled for years. This project involves a pipeline and export scheme championed Trump. Alaska LNG, estimated at $50 billion, will transport gas from northern Alaska through a pipeline of 1,300 km (807 miles) to Nikiski, where it can be exported to Asian countries. South Korea approached the plan with caution, and last November Industry Minister Kim informed parliament that Alaska LNG is a "high risk business". South Korean media has reported that Seoul had sought to include the project into the investment memorandum, but without any binding commitment. The participation of the United States in the World Cup is still under debate, and no decision has yet been made. Other Potential Investments According to Yoon Hu-duk, a lawmaker from the ruling party, another potential investment is Washington's request for South Korean assistance in reprocessing spent fuel nuclear. The lawmaker stated that Washington had proposed a plan to process 4,000 tons spent nuclear fuel. Yonhap reported that the US has a link between this and South Korea's efforts to build nuclear submarines and secure fuel. In a joint document, Washington and Seoul agreed to work closely together on fuel procurement at a summit of leaders held in November last year. According to Yoon, another potential project is carbon capture and utilisation storage (CCUS). Major US energy companies have already made large-scale investments in this area.
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TUI narrows 2026 operating profit outlook
TUI, a German travel company, lowered its forecast for 2026's operating earnings, citing regional conflict as the reason why consumers continued to book holidays later. However, demand was still strong in the fourth quarter. As jet fuel prices'spiralled,' airlines have been unable to increase their profits. Consumers worried about the escalating conflicts have either 'delayed booking or stopped booking holidays. The company stated that "early indications" for the winter season indicate a continuation of a 'later booking environment, against the backdrop of ongoing geopolitical and economic uncertainty." TUI, Europe's largest tour operator, which operates cruise ships, airlines, and hotels, suspended its revenue guidance and cut its profit forecast in March because of the surging costs for jet fuel and the uncertainty over the Iran war. Travel group expects underlying annual earnings before interest and taxes to be between EUR1.2 billion and EUR1.3 billion ($1.4billion and $1.5billion), not the EUR1.1 billion-EUR1.4 billion previously forecast.
Storage tanks are likely to run out of diesel by 2027, causing a global shortage.
According to storage market indicators and industry participants, the global diesel shortage caused by wars in Iran, Ukraine, and other countries is not expected to subside before next year. This will extend a rise in fuel prices that is weighing down economies around the world.
The wars in the Middle East have caused a severe disruption of diesel supplies. Millions?of?barrels?a day are stranded, and inventories are at historic lows. Prices also hit record highs. Diesel fuels heavy transport, agriculture and manufacturing. The shortage is a major drag on the economy.
Retail diesel prices in the United States have topped $6 per gallon for the first month, pinching farmers and truckers, and raising concerns for the Republican Party of President Donald Trump ahead of November's midterm elections.
Storage market tightness is another sign that the market remains tight. According to data from storage broker The Tank Tiger, refiners and traders in North America are refusing to renew their diesel storage leases due to the lack of fuel.
Steven Barsamian, Chief Operating Officer of The Tank Tiger, said that the amount of diesel storage available to lease in North America and Caribbean Islands, an important trading hub, had risen from 11 million barrels per month in June to 13 million barrels per month in October.
According to the US Energy Information Administration, total US diesel inventories fell to 107.9 millions barrels on September 11, the lowest since records began at this time in 1982.
Barsamian stated that the rapid withdrawal of diesel from US stores indicates the tight supply of the market in recent months. The increasing availability of tanks to lease also underscores the length of time the tightness will continue.
Barsamian stated that the combination of declining inventories and increasing storage availability indicates market participants expect supply to remain tight at least into the first quarter of 2019. Storage tanks are usually leased from six months to one year.
There are more storage units available to lease, because no one is renewing their contracts. Why would anyone pay for a tank of storage when there's no diesel? Barsamian replied.
EcoBox Dumpsters is a U.S. waste-management company that limits its fuel costs by using smaller trucks when possible, grouping pickups and deliveries in the same location, and confirming pick-up schedules to prevent unnecessary trips.
David Garrigus, the owner of the company, said that "each unnecessary truck move now has a greater cost."
A Global Concern
EIA expects inventory to remain depleted.
The EIA stated earlier this month that it expected the distillate fuel oil inventories in the United States, which are often sold as Diesel, to drop below 100 million barrels by September. They would also remain below the five-year low until the end of 2026 or most of 2027.
The European diesel stockpiles are also low. Stocks in the Amsterdam-Rotterdam-Antwerp storage, refining and trading hub were 16% below the five-year average in July, according to the latest data available from Insights Global. Singapore's distillate inventories have averaged 8.2 million barrels in the last few weeks. This is similar to pre-Iran War levels but lower than the average for 2025 of 9.6 millions.
Andrea Pescatori (Deputy Division Chief of the Asia-Pacific division, International Monetary Fund) said at the Asia Pacific Petroleum Conference, Singapore, that "various Asian emerging markets have been quite affected."
Some Signs of Relief
Executives in the industry expect diesel supplies to remain tight throughout winter, especially if Middle East tensions disrupt fuel exports. Vedomosti, a Russian business newspaper, reported on Tuesday that Moscow would extend its diesel export restrictions through the end of October.
Alex Hodes of StoneX, the director of energy strategy, says that US diesel prices could rise even more as US East Coast customers purchase barrels before heating season to avoid a price spike.
Analysts expect record margins in diesel refining to encourage increased production and limit price increases.
The US Diesel Crack Spread -- the premium for?ultra low sulfur diesel futures compared to US crude oil futures - hit a record of $118.62 per barrel on September 14.
Energy economist Philip Verleger stated this month that China could provide further relief, as it has steadily increased exports in recent months.
Even so, any new price increases could be triggered by a significant refinery failure or an escalation of the Iran-Russia or Russia Ukraine wars.
Hodes stated that "current fundamentals indicate higher prices will remain for some time."
(source: Reuters)