NEW YORK, United States / RankWire.AI / – Brent oil prices reached $110 a barrel on Friday, marking the first time since May, as escalating tensions in the Middle East fueled fears of tighter supplies. Brent futures for December settlement increased by $3.94, or 3.7%, to close at $109.86, the highest since May 19. Meanwhile, U.S. West Texas Intermediate crude for November delivery rose $3.44, or 3.5%, ending at $101.41, its highest since September 17. Investors also considered Russia’s potential diesel exports to the global market.
This surge capped a robust week for both benchmarks. Brent has gained 4.9% so far this week, marking its second consecutive weekly rise, while WTI has jumped 10.4%. On Thursday, Brent prices remained relatively steady, whereas WTI closed more than 3% higher. The move on Friday broke a largely range-bound week, according to Bloomberg. Earlier in October, Brent had topped $103 before the recent push toward $110.
Over the past ten days, attacks around the Strait of Hormuz have intensified. Iran stated it was increasing strikes in response to a U.S. blockade of its ports and the tougher sanctions imposed last month. Analysts at Kpler noted that these attacks have sharply reduced crude flows from the Gulf. They anticipate a slower, uneven recovery without a comprehensive political agreement. Rumors of attacks on Saudi energy infrastructure have also revived concerns of a broader escalation.
Russian diesel exports contribute to market worries
Concerns over Russian fuel supplies added further upward pressure on prices. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy announced Kyiv was abandoning an energy-site ceasefire, previously announced by U.S. President Donald Trump. Two industry sources told Reuters that the Ryazan refinery halted a primary crude distillation unit following a drone attack. Dennis Kissler of BOK Financial mentioned that it remains uncertain how much diesel Russia can supply to the market.
Tightening fuel markets have accompanied crude price increases. Diesel futures settled at $4.90 a gallon in New York on Friday, with diesel and gasoline contracts trading at their highest seasonal levels on record, according to Bloomberg. U.S. President Trump has stated that Moscow will fulfill an agreement to release Russian diesel to global markets. However, a bill introduced by U.S. lawmakers on Friday seeks to block that arrangement. The strike at Ryazan has further fueled doubts about the timing and volume of additional supply.
Strategic reserves released to mitigate supply pressures
Governments have taken steps to boost supply through emergency stock releases. The International Energy Agency agreed on Thursday to release over 20 million barrels of fuel. Additionally, on Friday, the U.S. Department of Energy issued a call for proposals to exchange up to 17 million barrels of crude from the Strategic Petroleum Reserve. Previously, Washington committed to loan 172 million barrels as part of a broader initiative with about 30 IEA member countries to release a total of 400 million barrels.
Market participants continue to price in the risk of further disruptions. Rebecca Babin, senior energy trader at CIBC Private Wealth Group, noted that risk premiums are returning to the market after a brief easing, especially as the weekend approaches. Analysts at Energy Aspects indicated that ongoing escalation risks are likely to keep prices supported. A significant U.S. crude stock draw, driven by hurricane-related production outages, also contributed to the upward momentum. Brent closed the week just below the $110 threshold.