Oil markets saw significant price increases in Q3 2026 as renewed Middle East conflict disrupted global supply. Brent crude started the quarter around $72/barrel but climbed above $100, eventually peaking at about $109 futures and $132 spot in September. Prices were driven by disruptions around the Strait of Hormuz, attacks on energy infrastructure, risks to Saudi and Russian supplies, and reduced releases from the U.S. Strategic Petroleum Reserve, the U.S. Energy Information Administration reports.
U.S. refineries also operated at unusually high levels, with utilization averaging 95%, the highest third-quarter level since 2019. Strong demand and tight global supplies pushed refinery margins sharply higher, particularly for distillate and jet fuel, whose crack spreads nearly tripled from year-ago levels. By late September, U.S. distillate inventories were 13% below the five-year average, highlighting continued tightness in global fuel markets.
