Weekly Energy Market Recap: Sep 4 - Sep 11, 2026

Key Takeaways

• Drone strikes hit Saudi Arabia's critical East-West oil pipeline system, with multiple pumping stations struck in an attack that could threaten one of the kingdom's most important crude export routes, according to OilPrice.com.
• Oil extended its rally as the IEA reported Russian oil refinery capacity is roughly 30% lower due to Ukrainian attacks, contributing to record-high diesel prices, according to the Oil & Gas Journal.
• The total U.S. rig count rose to 591, up 52 from a year ago, as oil topped $100 a barrel, according to Baker Hughes data reported by OilPrice.com.
• USA Rare Earth broke ground on a roughly $1.2 billion rare earth metal and magnet manufacturing facility in South Carolina, marking a milestone in its plan to build an integrated U.S. rare earth supply chain, according to MINING.COM.
• A federal court blocked the Department of Energy's attempt to force a shuttered Michigan coal plant to keep operating, ruling there was no "emergency" justifying the order, according to Utility Dive and Electrek.

Oil & Gas Markets

Crude prices remained on a war footing this week after Saudi Arabia's East-West pipeline system was struck on Thursday, with multiple pumping stations hit in an attack that represents a significant escalation in the regional energy war, directly targeting the infrastructure that Riyadh relies upon to bypass the Strait of Hormuz and maintain its crude exports, according to OilPrice.com. The Oil & Gas Journal reported that oil extended its rally on further Middle East disruptions, noting that an initial U.S. assessment found that pumping stations located alongside the pipeline were struck by projectiles, with satellite imagery showing extensive fire damage. The Journal also highlighted a parallel supply shock in refined products, reporting that the IEA is reporting Russian oil refinery capacity is estimated to be 30% lower as a result of attacks by Ukraine, playing a role in record high diesel prices.

The rig count offered a snapshot of the U.S. drilling response to higher prices. OilPrice.com reported that the total number of active drilling rigs for oil and gas in the United States rose this week, according to new data that Baker Hughes published on Friday, with the total rig count in the US rising to 591, up 52 from this same time last year, while the number of active oil rigs rose by 1, reaching 450 during the latest reporting period, which is 34 above this same time last year. Sentiment on where prices go from here diverged sharply: RBC Capital Markets warned that Brent could top $120 per barrel of Brent crude by the end of the year if fighting in the Middle East continues, while Energy Aspects founder Amrita Sen told Bloomberg that the oil market has reached the "inflection point" and is heading for an "upward spiral" between crude and products, citing a rebound in Chinese crude buying alongside accelerating global inventory drawdowns.

On the gas side, Natural Gas Intel reported that a punishing summer has reshaped regional balances heading into the shoulder season, noting that blistering heat across the western United States this summer has massively tightened regional storage balances versus historical norms in its coverage of the "Scorching Summer Erases Natural Gas Oversupply in Western US." Export demand also firmed, with NGI reporting that deliveries to US export terminals reached 19.6 Bcf/d Friday, the strongest single gas day since late April. Meanwhile, forward curves in the Midwest continue to price in scarcity risk even with healthy inventories, as NGI noted that above-average regional storage has done little to erase premiums embedded in the winter forward curve. Elsewhere, Eni Ghana and Vitol Upstream Tano signed memoranda of understanding to potentially explore offshore blocks GH WB 3 and GH WB 8 in Ghana's Tano basin, according to the Oil & Gas Journal, and OilPrice.com reported the Bank of England is expected to raise interest rates as many as four times over the next year following surprise UK economic growth.

Renewable Energy Developments

Coverage this week centered on U.S. energy policy rather than new project announcements. A federal court blocked the Department of Energy's attempt to force a shuttered Michigan coal plant to remain open, with Electrek reporting the ruling found there is no "emergency" that should force the plant to stay open. Utility Dive detailed the court's reasoning, citing the judges' finding that "The Department's reading of 'emergency' invites frequent federal interventions that are unsupported by the statute and threaten the stability of the energy market," according to the outlet's coverage of the DOE order being rejected as government overreach.

Beyond that ruling, coverage of core renewable generation, wind, solar, and storage projects was limited this week. Stake & Paper will continue to track developments in that space as they emerge.

Mining & Critical Minerals

The rare earth supply chain buildout continued to advance domestically. USA Rare Earth broke ground on its South Carolina facility, an event MINING.COM described as a marking a milestone in its plan to build an integrated US rare earth supply chain. The Blacksburg facility represents an investment of approximately $1.2 billion and is expected to create roughly 490 manufacturing jobs on a 124-acre site in Cherokee County, with the company targeting commissioning to begin in 2028, with the facility aiming to produce 6,400 metric tons per annum of sintered neodymium-iron-boron permanent magnets.

Copper markets drew renewed attention after Investing.com's coverage flagged that global mine supply is on track for its first annual decline since 2017. Bloomberg reported that International Copper Study Group data show output fell 1.1% in the first half, with major producers Codelco and Freeport-McMoRan Inc. posting double-digit declines, and that Morgan Stanley, which entered the year expecting mine supply to expand, now sees it little changed or slightly lower, raising the prospect of the first annual decline since 2017.

Elsewhere in mining, MINING.COM reported that trading giants Glencore and Mercuria are competing for a deal that could revive Venezuela's Venalum aluminum smelter after years of power shortages and underinvestment. The outlet also reported that Talon has scrapped plans for a North Dakota processing mill, with ore from Minnesota's Tamarack project instead set to be processed at an existing Michigan mill, while EU regulators are weighing scrutiny of an Anglo American-MMG nickel deal amid concerns over Chinese ownership of overseas resources. On the federal lands front, the Bureau of Land Management announced it will hold a California geothermal lease sale as part of an effort to expand domestic energy production, and Greenland Mines provided a progress update on its 2026 field programs at the Skaergaard and Sarfartoq projects, according to GlobeNewswire.

Week Ahead Preview

With Middle East hostilities continuing to drive volatility across crude, diesel, and shipping markets, investors will be watching whether repairs to Saudi Arabia's East-West pipeline infrastructure proceed without further disruption and whether Brent's rally toward the $120 levels flagged by RBC materializes. On the mining side, watch for further data on global copper mine supply trends following this week's warnings of a potential first annual production decline since 2017, as well as any updates on the Glencore-Mercuria bidding process for Venezuela's Venalum smelter. Natural gas markets bear watching as the shoulder season approaches, given tightened storage balances in the western U.S. and persistent winter forward-curve premiums in the Midwest.

This weekly recap is compiled from coverage by Oil & Gas Journal, OilPrice.com, Natural Gas Intel, MINING.COM, Utility Dive, Electrek, Investing.com Commodities, GlobeNewswire, and BLM National, with additional context from Bloomberg. For daily updates, visit stakeandpaper.com.