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Small Potatoes. The Energy Report 09/08/2026

By On September 8, 2026 - 9:20 AM · In Market Commentaries, Phil Flynn Energy Report
Holiday weekends never sleep. Brent came within a hair of $100. November tagged about $99.45 in Asia and was still hanging near $99 early Tuesday after that $2 jump. WTI rode shotgun into the mid-$94s — best print since early June. First time Brent has stared this hard at triple digits since the July spike on attacks that President Trump says was small potatoes!  The spark wasn’t another tanker rumor. It was Houthis hitting Saudi energy sites over the weekend. Riyadh said plants went down, fires broke out, 73 wounded. Jazan — that 400,000-barrel-a-day Red Sea complex that’s already taken punches this war — is right in the neighborhood. When the swing producer pauses units on a holiday, traders don’t wait for the damage report. They buy.
That’s crude. Products are  still the  real story. Diesel cracks went circus-mode. U.S. diesel versus WTI blew through $100 a barrel in August and printed as high as about $106. Gasoline cracks are hot but not that hot — mid-$40s on a lot of prints, 3-2-1 still in the $60s. Distillates remain well below the five-year average.
The piece people still skip: Ukraine keeps knocking Russian refiners offline. Estimates have run 20 to 40 percent at the worst points this year. Moscow banned diesel exports in July and pulled a top-three exporter off the water. Peak seaborne diesel losses around 1.4 million barrels a day against an 8-to-9 million barrel traded market. Three hits at once: Saudi and Gulf plants getting struck, Hormuz and the Red Sea choking product, Russian diesel not sailing. Crude can find a pipeline. Finished diesel cannot. That’s why cracks went to $100-plus while WTI was “only” in the 80s and 90s.
Labor Day told you at the pump. AAA: regular $4.15. Never broken $4 on Labor Day before. Old holiday record was $3.82 in 2012. All-time high still $5.02 from June 2022. About 30 percent higher than a year ago. Diesel: $5.90, a record, versus $3.71 last year. That’s not summer blend. That’s a product shortage at the truck stop and the grocery aisle.
Now the White House tape — and this is where the market and the president are having two different conversations.
Trump called the Iran fight “small potatoes.” Said the U.S. controls Hormuz very strongly. No mines in the strait. A lot of oil is coming out. Intermittent strikes. Took out a lot of ships last night. If anything goes badly, we hit them hard. May hit Pickaxe very soon. China has minimal involvement. He talks to Putin; Putin isn’t looking to attack NATO. Witkoff and Kushner are shuttling a proposal to freeze the Russia war. And the line that matters for the long tape: Hormuz could eventually be unnecessary. Pipelines. Overland routes. “Soon it will be irrelevant.”
Iran still talks like it owns the waterway. The tape is voting it is not irrelevant yet. Flows are still a fraction of the old 20 million barrels a day, and every weekend exchange of fire puts a couple more dollars in the front month. Fair. That’s the market’s job.
But don’t miss what he’s actually doing. Escorts. Strikes on launchers. Taking the strait away as a ransom note. Building the off-ramps so Tehran doesn’t get to charge the world forever. Kushner and Witkoff keep a door cracked; the president keeps the blockade on until they blink on nukes and traffic. Axios says the admin is already drafting a post-war Middle East plan. That’s not “we’re lost.” That’s “we’re writing the next chapter.”
Brent crude almost tagged $100 on Saudi refinery risk, then faciled nas  Ukraine plus the Russian diesel ban are still the quiet engine under record cracks, Labor Day gas set a holiday record at $4.15, diesel is $5.90 — and the pressure campaign is trying to make Hormuz a depreciating asset instead of a permanent tax on the American driver.
Watch the Saudi damage reports, the next EIA distillate number, and Russian run rates after the latest Ukrainian hits. If Jazan stays down and Moscow can’t export diesel, $100 Brent is a way station. If the pipelines and the escorts actually move barrels, the “small potatoes” line starts to look like a trade.
Summer, We Hardly Knew You. Air conditioners hummed all weekend. Then Labor Day packed the bags. For nat gas, summer just waved from the driveway.
October Henry Hub settled Friday at $2.975. Early Tuesday it’s hugging $3.00. Not a blowoff. Not a washout. A market saying goodbye to cooling demand and hello to the shoulder.
Record production is the bear case. U.S. dry gas has been running at all-time highs — June already printed about 112 Bcf/d, up 4.5% year over year, and weekend output has been near those peaks. That is a lot of molecules looking for a home.
LNG is the bid that keeps this from rolling over. Feedgas to export plants has been firm as maintenance rolls off — Freeport back in the stack, Corpus Christi expansion online, flows to terminals recently running near 20 Bcf/d. Mexico pipeline gas is still leaving the Lower 48. You can produce a record. If you also ship a record, $3 holds a lot better than the bears advertised.
Storage is fine, not fat. Last EIA print: +30 Bcf to 3,214 Bcf, a hair over the five-year average, a hair under last year. Next number is Thursday. If the South stays hot, that injection shrinks. If the European model is right and the ridge breaks, you get another sleepy build.
Weather is still the referee. GFS is hotter than ECMWF across Houston and Atlanta. One more heat punch and power burn sticks around. A clean cool-down and summer really is over. Tropical risk is the other headline — you don’t need a direct hit on a Gulf plant. You need the threat.
Download the Fox Weather app. That is the alert I want on your phone when Texas stays 95 or a swirl shows up in the Gulf. Stay with the Fox Business Network for the storage print and the strip. If you want to trade the handoff from AC season to LNG season, open an account with The PRICE Futures Group. Call me at 888-264-5665, or email pflynn@pricegroup.com and tell me what you are looking at. And make sure that you follow me on exit energy Phil Flynn and stay tuned to the Fox Business Network because they’re the only network in America that’s truly invested in you!

Thanks,

Phil Flynn

Senior Market Analyst & Author of The Energy Report

Contributor to FOX Business Network

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