Kuwaiti crude oil price falls by $4.78 to $108.69

The price of a barrel of Kuwaiti crude oil fell by $4.78 to $108.69 per barrel in yesterday’s trading, down from $113.47 on Thursday, according to the price announced by the Kuwait Petroleum Corporation.

In global markets, oil prices dropped by about 2 percent at Friday’s settlement amid growing hopes of reaching an agreement between the United States and Iran, and talk of a potential U.S. ban on diesel exports, despite traders’ concerns that escalating Houthi attacks on Saudi Arabia could disrupt supplies from the Middle East’s main producer.

As a result, Brent crude rose by less than 1 percent over the week, while West Texas Intermediate (WTI) crude fell by about 8 percent.

Sources close to the negotiations to end the war stated this week that American and Iranian negotiators are discussing in New York the possibility of reaching a phased path to end the war, which would involve Tehran opening the Strait of Hormuz and Washington lifting the economic sanctions imposed on Iran.

However, a senior Iranian official told Reuters that Iran has confirmed it will show no flexibility regarding its nuclear program, even if the United States accepts its proposal to reopen the Strait of Hormuz, which includes steps such as lifting the U.S. naval blockade on Iranian ports.

Analysts at energy consulting firm Rystad Energy said in a note that “the energy sector is under pressure again... as the market continues to assess the likelihood of a U.S. ban on diesel exports, while talk of diplomatic progress toward opening the Strait of Hormuz is contributing to selling pressure today.”

Talk from Washington about a potential ban on diesel exports is widening the gap between U.S. crude futures and global benchmark Brent crude, signaling that markets expect U.S. refineries to process less crude oil if they cannot export their diesel production and must keep it domestically.

The Brent crude premium over WTI crude rose to its highest level since May, for the third consecutive day, while U.S. gasoline futures fell by about 4 percent on Friday.

Preliminary data from ship-tracking firm Kpler showed on Friday that crude oil flows exiting the Strait of Hormuz reached 33.7 million barrels in the week starting September 20, indicating that exports are proceeding at a pace close to the previous week’s levels.

Before the outbreak of the war with Iran, about 20 percent of global oil supplies passed through the strait.

In a separate development, U.S. Ambassador to China, David Perdue, said that U.S. President Donald Trump clarified during his talks with Chinese President Xi Jinping that any Chinese support for Iran would be unacceptable.

Any agreements to ease trade tensions between the United States and China could boost economic growth and increase energy demand.

Russian news agencies quoted President Vladimir Putin as saying that all proposals for settling the war with Ukraine remain on the table, but Moscow still needs to evaluate what serves its interests.

The intense drone strikes on Russian refineries came after discussions at the United Nations headquarters in New York regarding the possibility of reaching a ceasefire related to the energy sector between Kyiv and Moscow.

Any agreement to end the Russia-Ukraine war could allow Russia to export more energy. U.S. energy data indicates that Russia, a member of the OPEC+ alliance, was the world’s third-largest crude oil producer in 2025, after the United States and Saudi Arabia.