Brent crude oil climbed from $72 a barrel to a third-quarter peak of $109 as conflict persisted in the Middle East between July and September 2026, the U.S. Energy Information Administration said.
Brent futures opened the quarter at $72 a barrel on July 1, the lowest level since February 26, two days before the war began. That early low reflected increased flows through the Strait of Hormuz in June, following a June 17 memorandum of understanding. Prices turned higher after military strikes resumed on July 7, and Brent futures passed $100 a barrel on July 23. The price then traded between $79 and $98 a barrel until September 8.
Price swings through the quarter
Brent crude crossed $100 a barrel again on September 9, after an escalation of military action against energy infrastructure in the Middle East and in Russia. Prices also rose as earlier offsets to tight global supply began to fade. Reduced Chinese crude imports since April had been absorbing some of the shock from lost Middle East supply, but China's third-quarter imports rose from May and June levels, adding demand back into the market. Releases from the U.S. Strategic Petroleum Reserve also slowed sharply in September, limiting an additional source of supply.
Brent futures peaked on September 15 at $109 a barrel, while spot prices reached as high as $132 a barrel around the same time. As in April, supply disruptions, particularly out of Saudi Arabia, pushed Brent spot prices higher as buyers struggled to find short-term supply during the escalation. Crude oil prices averaged around $104 a barrel in the final two weeks of the quarter, as markets weighed peace discussions against the risk of a wider war.
Refinery margins and inventories
U.S. refineries ran at unseasonably high levels in the third quarter, with utilization averaging 95%, the most crude processed for a third quarter since 2019, when refining capacity was 4% higher. Motor gasoline, distillate, and jet fuel crack spreads, which measure refining margins for those fuels, were all elevated. The quarterly average gasoline crack spread more than doubled its year-ago level despite declining in the second half of the quarter, while the distillate and jet fuel crack spreads nearly tripled theirs. Crack spreads were highest for distillate fuel oil and second-highest for jet fuel, because disrupted refining in Russia, China, and the Middle East had supplied large shares of those fuels to global markets. U.S. distillate supplies tightened further from high exports to markets already short on supply, and from higher costs for importing regions such as the U.S. East Coast.
| Inventory, week ending Sept. 25 | Vs. five-year (2021-2025) average |
|---|---|
| Distillate fuel | 13% below |
| Gasoline | 7% below |
| Jet fuel | 3% above |
