Oil prices fell from recent peaks as Saudi Arabia redirected crude exports through Oman to bypass pipeline damage. Meanwhile, record European fuel prices stoked political demands for a windfall tax, and South Korean authorities arrested petrochemical executives in a massive price-fixing investigation. In deals and regulation, TotalEnergies formed a $1.8 billion infrastructure venture with BlackRock, and Texas regulators approved ExxonMobil's major carbon capture project.
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Petrochemical Executives Arrested Over Alleged Price-Fixing Scheme
Prosecuting petrochemical collusion tied to naphtha volatility establishes that input-cost disruptions can no longer shield basic chemical producers from antitrust scrutiny on downstream price adjustments.
The Seoul Central District Court issued arrest warrants for two petrochemical executives on charges of colluding on the prices of products worth 15 trillion won. The Fair Trade Investigation Division of the Seoul Central District Prosecutors Office requested warrants for eight current and former executives across seven domestic petrochemical companies, citing violations of the Regulation and Fair Trade Act. Investigators allege the executives coordinated prices across eight product categories, including PVC and caustic soda, over a five-year period starting in 2021. The court detained PKC sales head Bae and an LG Chem official surnamed Hwang over concerns they might destroy evidence. Warrants for the remaining six individuals, including OCI Chief Executive Kim Yu-shin and former PKC Chief Executive Jang Young-soo, were dismissed due to insufficient grounds for detention. Prosecutors claim the firms exploited naphtha supply instability caused by Middle East conflicts to maintain the price-fixing scheme.
Oil Prices Surge Above $3 Following Middle East Escalation and Supply Concerns
Depleted strategic reserves eliminate the primary buffer against maritime choke-point disruptions, forcing central banks to choose between compounding inflation and suppressing demand through tighter monetary policy.
fell 0.94% to $103.83 per and U.S. futures dropped 0.88% to $101.01 per barrel as traders weighed border strikes between Saudi Arabia and Yemen's Iran-backed Houthis against new supply routes. Saudi Arabia is utilizing ship-to-ship transfers off Oman's Sohar port to deliver to Asian buyers, mitigating the impact of drone attacks that damaged three pumping stations on the key East-West pipeline to the Red Sea port of Yanbu. U.S. Energy Secretary Chris Wright stated that the pipeline outage is a brief interruption measuring in days, contrasting with satellite imagery and industry estimates warning repairs could take weeks. Meanwhile, national average diesel prices reached a record high of $6.39 per gallon, prompting Senate Majority Leader John Thune and market strategists to raise the prospect of a U.S. fuel export ban ahead of midterm elections.
Flames Reported Near Riyadh Airport Amid Middle East Energy Supply Tensions
Physical threats near Saudi transit hubs jeopardize the inland pipeline bypasses that markets rely on to circumvent naval chokepoint blockades during regional conflict.
Flames and a large plume of smoke rose near King Khalid International Airport in Riyadh early Saturday as Saudi Arabia issued civil defense alerts following reports of explosions. CNBC.com reports that authorities have not yet identified the cause of the smoke, and the Saudi government did not immediately respond to requests for comment. The incident coincides with escalating regional conflict, including recent Houthi advances around the Bab el-Mandeb Strait and a September 11 drone attack that forced the shutdown of Saudi Arabia's East-West oil pipeline. Meanwhile, oil remains up 72% since the start of 2026 due to disrupted supplies through the Strait of Hormuz, though prices retreated late in the week. U.S. fell 1.6% to close at $100.30 per , while Brent settled lower at $103.87.
Crude Oil Futures Closing Prices ($)
WTI and Brent futures finished the week lower amid supply concerns.
ExxonMobil Secures Texas Approval for Rose Carbon Capture Project
Gaining regulatory approval to inject captured carbon into dedicated wells transforms ExxonMobil's Gulf Coast decarbonization strategy from a capital-intensive promise into an operational asset with clear revenue visibility.
The Railroad Commission of Texas approved ExxonMobil's permit for the Rose carbon capture and storage project in a 2-1 vote. The decision gives ExxonMobil the authority to inject up to 53 million metric tons of carbon dioxide into three underground wells across 13,000 acres in Jefferson County. Commissioner Wayne Christian cast the lone dissenting vote, citing concerns over long-term safety, public subsidies, and consumer costs. The project will use an 18-mile pipeline to transport captured carbon from industrial sources along the Texas Gulf Coast to storage formations located between half a mile and one and a half miles underground.
US Dollar Reaches Two-Week High as Oil Rally Drives Yields and Fed Rate Expectations
Energy-driven inflation shocks directly reprice sovereign yield curves, compelling central banks toward tighter monetary policy and driving currency strength relative to lower-yielding economies.
Channelnewsasia.com reports that the US dollar traded near a two-week high at 99.55 as surging oil prices lifted yields and reinforced expectations of a rate increase. Oil climbed to $107 a after attacks on Saudi Arabia and postponed Gulf-Iran talks, driving 10-year Treasury yields above the psychological level of 5 per cent for the first time since October 2023. Markets priced in a roughly 93 per cent chance of a hike on Wednesday, supported by a stronger and firm August consumer prices. The euro weakened to $1.1538 and sterling slipped to $1.3494, while the yen pulled away from a seven-month high ahead of an expected Bank of Japan rate decision.
Exchange Rates and Yields (USD or %)
The dollar index held at 99.55 while 10-year yields neared 5 per cent.
TotalEnergies and BlackRock Sign $1.8 Billion African Energy Asset Deal
Replacing upfront infrastructure capital expenditure with throughput-based tariffs allows energy majors to scale frontier exploration by offloading midstream asset funding onto private infrastructure partners.
TotalEnergies signed a $1.8 billion partnership with Global Infrastructure Partners, a subsidiary of BlackRock, covering oil and gas infrastructure in Africa. Under the agreement, Global Infrastructure Partners provides a $1.8 billion contribution in exchange for a throughput-based paid by TotalEnergies over a period of up to 15 years. The transaction monetizes value from portions of the French energy giant's African midstream infrastructure while maintaining operational access through the long-term tariff arrangement. TotalEnergies did not disclose the specific assets included in the agreement.
Record EU Fuel Prices Trigger Calls for Bloc-Wide Windfall Tax
A unified supranational tax on excess energy profits threatens to compress refining margins precisely as divergent national subsidies distort regional demand and compliance costs.
theguardian.com reports that record fuel and gas prices across the European Union have prompted calls from member states for a bloc-wide windfall tax on energy companies. Germany's finance minister, Lars Klingbeil, urged the European Commission to propose taxation models for excessive profits by next month as oil trade above $100 a . Pump prices reached historic highs, with German diesel hitting a record average of €2.45 a litre on Wednesday and petrol reaching €2.31 a litre. Across the EU, petrol prices are 24% higher than a year earlier, while diesel is up 38% and gas trades at €81 a megawatt hour. National governments are deploying divergent fiscal measures to contain public discontent ahead of elections next year in eight EU countries. Italy plans to scrap road tax for 14.5m cars and motorbikes from next year at a cost of over €2bn. Germany announced a fuel tax cut of €0.17 from 1 October until the end of the year alongside plans to pursue a fuel price cap by 1 January 2027.
Supply diversions and corporate investments contrast with escalating Middle East conflict risks and record consumer fuel prices. Whether new transport routes can offset regional instability and prevent wider European tax interventions remains the key question for traders.
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