Newsletter No. 184
Good afternoon subscriber,
This week, oil markets are being shaped by continued tension in the Middle East, sharply reduced traffic through the Strait of Hormuz, and signs that Asian crude demand is starting to recover.
At the same time, companies like Flywheel Energy are continuing to put billions of dollars into U.S. oil and gas assets, showing that capital is still moving toward quality production and development opportunities.
These stories all point to the same bigger picture. Global supply remains uncertain, demand is still there, and dependable U.S. oil and gas production continues to matter.
Keep reading this week’s The Upside for a closer look at the stories shaping the energy market.
This Week's Headlines
Oil and Gas News
- Oil Climbs as Iran Tensions Continue
- Asia’s Oil Demand Is Coming Back
- Hormuz Traffic Drops Sharply
What's Happening at King
- What’s Next for Oil & Gas in Q4 2026 on The Jay Young Show
- Upcoming John Mauldin Webinar on Energy Demand, Diesel Costs and the Changing World
- Continuing Tax Webinar Series Featuring Tax Strategist Ed Lyon
Move to Watch
-
Flywheel Keeps Betting on U.S. Oil and Gas
Oil and Gas News
Oil Climbs as Iran Tensions Continue
Oil prices moved higher Thursday as the market reacted to continued uncertainty between the U.S. and Iran. Brent climbed to about $107 a barrel, while WTI traded around $95.
Iran’s president said the country would not surrender, but also said diplomacy is still on the table. At the same time, discussions continue around possibly reopening the Strait of Hormuz, which remains a major issue for global oil supply.
There is also more oil starting to move through other routes. Saudi Arabia has restarted its East-West Pipeline, giving it another way to get crude to market without relying on Hormuz.
The big picture is simple. The market is being pulled in two directions. More supply and diplomacy can push prices down, while continued tension in the Middle East can quickly push them back up. That is why we continue to see so much movement in oil prices right now.
Asia’s Oil Demand Is Coming Back
Asia’s crude oil imports are picking back up. The region is expected to import nearly 24 million barrels a day in September, the highest level since February. That is a good rebound, but imports are still about 13% below where they were before the Iran war.
China is also buying more oil again, but still well below pre-war levels. The takeaway is pretty simple. Global oil demand is still there, but supply routes remain tight and the market is having to adjust.
That matters for the U.S. The more uncertain global supply becomes, the more important dependable American oil and gas production is.
Hormuz Traffic Drops Sharply
Shipping through the Strait of Hormuz is still running far below normal. Only three commodity vessels moved through the Strait in the latest day, compared with a 10-day average of about 15. That means visible traffic is down roughly 80%.
The reason is simple. Ship owners are still being cautious because of ongoing security risks in the region. Saudi Arabia has restarted part of its East-West pipeline, which gives it another route to move oil without going through Hormuz, but the Strait is still one of the most important oil chokepoints in the world.
This is why Hormuz matters so much to the oil market. When traffic slows this much, it adds pressure and uncertainty to global supply.
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Happening at King
What’s Next for Oil & Gas in Q4 2026 on The Jay Young Show
On this episode of The Jay Young Show, we welcome back Josef Schachter, founder of the Schachter Energy Report, for a conversation about the latest developments across the oil and natural gas markets and what Josef is watching as we move toward the end of the year.
Upcoming Mauldin Webinar on Energy Demand, Diesel Prices and the Changing World
Join King's Chief Economist John Mauldin and SVP Rachel Griffith for a timely discussion on the macro and geopolitical forces reshaping energy markets and what they could mean for investors, including how diesel prices are affecting everyone's pocketbooks.
Date: Tuesday, October 7, 2026
Time: 11 a.m. CT
Register Here
Upcoming Tax Webinar Series Featuring Tax Strategist Ed Lyon
Planning ahead can make a big difference when it comes to taxes. Join Tax Strategist Ed Lyon and King SVP Rachel Griffith for a three-part webinar series focused on practical tax strategies for high-income professionals, business owners and investors.
Rethink Your Tax Strategy
Date: Tuesday, October 13, 2026
Time: 2 p.m. CT
Register Here
Learn More about how King Operating Corporation is helping develop the energy America needs for the future.
Move to Watch
Flywheel Keeps Betting on U.S. Oil and Gas
Flywheel Energy has spent about $10 billion over the last year and a half building a much bigger U.S. oil and gas business across four basins. What started as a Fayetteville production story has expanded into the Midcontinent, Eagle Ford and Piceance, with more drilling activity still being added.
What stands out to me is their strategy. They are not just buying production and sitting on it. They are looking for good producing assets with additional upside through drilling, better operations, workovers, technology and cost control.
That is a simple idea I have believed in for a long time. Buy quality oil and gas assets, improve them, develop the upside and create more value. Flywheel says it still wants to deploy more capital, but the focus is on growing at a pace the company can actually operate well.
All the best,
Jay
