Oil Market Daily News Commentary
HOUSTON, Oct. 21, 2026 /PRNewswire/ — Crude oil gets the headlines, but the tightest corner of the oil market right now is diesel. The average U.S. on-highway diesel price rose 9.7 cents last week to $6.276 a gallon, $2.656 higher than a year ago, even as regular gasoline slipped 4.7 cents to $4.284, according to the U.S. Energy Information Administration. In its October Oil Market Report, the International Energy Agency said that while global diesel prices have eased from all-time highs of more than $200 a barrel reached in September, benchmarks remain nearly double the price of crude oil and their pre-crisis levels. Active Companies from around the markets with current developments this week include: Halliburton Company (NYSE: HAL), International Seaways, Inc. (NYSE: INSW), Valero Energy Corporation (NYSE: VLO), Kinder Morgan, Inc. (NYSE: KMI), ExxonMobil Holdings Corporation (NYSE: XOM).
The IEA traced the squeeze to continued disruptions to Middle East exports, compounded by lower supply from Russia and some Asian countries, which cut global diesel and gasoil availability by 1.7 million barrels per day in the third quarter compared with a year earlier. The shortage is showing up in U.S. tanks as well. Distillate inventories fell 2.5 million barrels in the week ended October 9 to 12% below the five-year average, according to the EIA’s weekly report, and the agency’s Short-Term Energy Outlook said East Coast distillate inventories fell 32% below their five-year seasonal average in September.
The pressure runs back up the chain to crude. The EIA said extreme tightness in diesel markets raises demand for crude oil in order for refiners to meet diesel demand, and it now forecasts Brent will average $105 per barrel in the fourth quarter before falling to an average of $84 next year. On Tuesday, December Brent futures settled at $108.79 a barrel and December WTI at $97.82, according to exchange settlement data. The seven OPEC+ countries in the group’s voluntary adjustments agreed on October 4 to maintain September production levels for November and will meet again on November 1.
The costs are reaching beyond the energy patch. On October 19, the U.S. Department of Agriculture announced it will make $8 billion available for one-time payments to American farmers this harvest season to provide relief during temporary market disruptions and increased input costs. For U.S. refiners, the IEA said discounted feedstocks propelled margins to new highs, while record freight and crude costs crushed margins in Europe and Asia.
When fuel prices move this fast, energy stocks can swing on a single report. Visit us at Oilmarketdaily.com/ let’s read the news and the charts together.
In other industry developments and happenings in the market this week include:
Halliburton Company (NYSE: HAL)
Halliburton reported on October 20 third-quarter revenue of $5.7 billion, net income of $0.50 per diluted share and adjusted net income of $0.60 per diluted share. Middle East/Asia revenue rose 8% sequentially to $1.4 billion, which the company said was primarily driven by higher activity across multiple product service lines in Saudi Arabia and Kuwait. The shares rose 1.85% to $33.59 on Tuesday.
“We are another three months into one of the largest energy disruptions in history. I expect the work to restore production, rebuild inventories and strengthen energy security will drive multi-year demand growth for oilfield services,” said Jeff Miller, Chairman, President and CEO of Halliburton.
International Seaways, Inc. (NYSE: INSW)
International Seaways announced on October 16 agreements to acquire an Oslo-listed owner of four VLCC vessels, including newbuildings, in transactions that value that company at approximately $370 million. In preliminary third-quarter figures, the tanker company estimated net income of approximately $340 million to $350 million, including a gain of approximately $50 million on the sale of a Suezmax, and blended spot earnings of approximately $68,000 per day, compared to $29,000 per day a year earlier. For the first three weeks of the fourth quarter, it has fixed blended spot earnings of approximately $180,000 per day on about 37% of expected revenue days, with full third-quarter results due November 5.
“The transaction underscores our disciplined approach to growth,” said Lois K. Zabrocky, International Seaways President and CEO.
Valero Energy Corporation (NYSE: VLO)
Valero will host its third-quarter conference call on Thursday, October 22, at 10:00 a.m. ET, with the earnings release issued earlier that morning. In the second quarter, the refiner reported net income attributable to Valero stockholders of $3.7 billion, or $12.62 per share, compared to $714 million, or $2.28 per share, a year earlier, and Refining segment operating income of $4.5 billion, compared to $1.3 billion.
“We are pleased to report a strong second quarter, driven by excellent operations and commercial execution across all three of our business segments,” said Lane Riggs, Valero’s Chairman, Chief Executive Officer and President.
Kinder Morgan, Inc. (NYSE: KMI)
Kinder Morgan has scheduled a webcast of its third-quarter results for Wednesday, October 21, at 4:30 p.m. ET. In the second quarter, the pipeline operator reported net income attributable to KMI of $867 million, an all-time record high for the second quarter, up from $715 million a year earlier, and said contributions from its Products Pipelines segment rose due primarily to higher commodity prices, even as total refined products volumes were down 5%.
“Strong financial contributions from our business segments resulted in a record second quarter,” said Kim Dang, Chief Executive Officer of Kinder Morgan.
ExxonMobil Holdings Corporation (NYSE: XOM)
ExxonMobil will release its third-quarter results on Friday, October 30, at 5:30 a.m. CT. In the second quarter, the company reported record second-quarter diesel production, along with reported EPS of $3.48 and adjusted EPS of $3.52.
“The second quarter was shaped by disruption, but defined by execution,” said Darren Woods, ExxonMobil chairman and chief executive officer.
Diesel, crude and the companies that move them are all reacting to the same supply story. Learn to read the setups behind moves like these with the free Stock Preachers guide, plus The Roadmap market reports, at oilmarketdaily.com.
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