Europe cut off
** Saudi Aramco has told European term customers they will receive no Saudi crude in October, even as the kingdom pushes roughly 60 million barrels back through the Persian Gulf after damage to its East-West pipeline. At least two European refiners were told their October allocations are zero, Bloomberg reported Friday. People familiar with the decision said it applies to all European term buyers.
Losses pared
** Oil prices pared earlier losses on Friday as markets assessed Saudi supply alongside concerns about a widening Middle East conflict. Brent crude hit a session low of $101.92 a barrel, while WTI touched a session low of $99.39 before both benchmarks pared losses.
Missing money
** Iranian authorities are investigating allegations that at least $1.6 billion in oil revenue handled through a secret network of intermediaries was not returned to the state, according to reports that have renewed scrutiny of Tehran’s methods for moving money around international sanctions.
Tankers
** At least two LNG carriers have transited the Strait of Hormuz so far this week, while two others were detected to have engaged in ship-to-ship transfers outside the Strait offshore Oman, tanker-tracking and satellite data compiled by Bloomberg showed on Friday.
Italy involved
** Italy will deploy warships to ensure safe passage for its commercial vessels through the Bab al-Mandeb strait, Defense Minister Guido Crosetto said, adding that Rome would not wait for a joint decision from the European Union.
U.S. Energy
** A U.S. House-passed bill aimed at shielding Americans from rising energy costs from data centers is on hold for now after Sen. Martin Heinrich (D-N.M.) criticized the measure as lacking teeth and blocked it from being fast-tracked in the Senate.
** President Donald Trump said on Friday he is engaging with Republican Senate Majority Leader John Thune about bringing to the floor a bill aimed at protecting households from electricity cost increases tied to the expansion of data centers.
** Environmental and public health groups sue the Trump administration over its move to wipe out most climate regulations on coal and gas power plants.
** A report commissioned by Pennsylvania regulators shows rolling blackouts could occur approximately 13 days a year in PJM’s territory if data center growth continues unrestrained and adequate new power supplies fail to come online.
** The cost of grid congestion in the U.S. hit a record last year at over $17 billion, a significant jump from the prior year’s $12 billion, finds a new report.
** Washington’s Supreme Court delivers the final blow to a 2024 ballot measure that sought to halt the state’s shift away from natural gas.
** Households that heat with natural gas are projected to spend 14% less on space heating this winter than last year, according to the American Gas Association’s Winter Heating Outlook.
