NEW YORK, United States / RankWire.AI / – Brent crude prices hit $110 per barrel on Friday, marking the first time since May as rising tensions in the Middle East sparked concerns over tighter supply. Brent futures for December settlement closed $3.94, or 3.7%, higher at $109.86, the highest since May 19. Meanwhile, U.S. West Texas Intermediate crude for November delivery increased by $3.44, or 3.5%, to $101.41, reaching the highest point since September 17. Investors also considered Russia’s potential diesel exports to the international market.
The rally extended a robust week for both benchmarks. Brent has gained 4.9% so far in the week, marking its second consecutive weekly rise. WTI experienced a 10.4% increase over the same period. On Thursday, Brent prices remained relatively stable, while WTI closed more than 3% higher. Friday’s surge broke the otherwise range-bound week, according to Bloomberg. Earlier in October, Brent had topped $103 before the recent push toward $110.
Over the past 10 days, attacks near the Strait of Hormuz have intensified. Iran announced it was increasing strikes in response to a U.S. blockade of its ports and the tougher sanctions imposed last month. Analysts from Kpler noted that these attacks have significantly 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 resurfaced, fueling fears of broader escalation.
Russian diesel exports contribute to market anxiety
Concerns over Russian fuel supplies have bolstered prices further. After President Volodymyr Zelenskiy stated that Kyiv was abandoning a ceasefire on energy sites announced by U.S. President Donald Trump, Ukraine targeted a Russian refinery on Thursday. Reuters sources revealed that the Ryazan refinery halted a primary crude distillation unit following a drone strike. Dennis Kissler from BOK Financial mentioned that it remains uncertain how much diesel Russia can supply to the market.
The tightening of fuel markets accompanies crude oil price gains. Diesel futures settled at $4.90 per gallon in New York on Friday, with diesel and gasoline contracts reaching their highest seasonal levels on record, according to Bloomberg. U.S. President Trump has claimed that Moscow will fulfill a deal to release Russian diesel to global markets. However, a bill introduced by U.S. lawmakers on Friday aims to block that arrangement. The strike on Ryazan raised additional questions about the timing and volume of future supplies.
Strategic reserves tapped to mitigate supply pressures
Governments have begun releasing emergency stockpiles to address supply concerns. The International Energy Agency agreed on Thursday to release over 20 million barrels of fuel. On Friday, the U.S. Department of Energy issued a request for proposals to exchange up to 17 million barrels of crude from the Strategic Petroleum Reserve. Previously, Washington agreed to lend 172 million barrels as part of a broader plan involving 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, commented that risk premiums are once again being added to prices after a brief reprieve, especially heading into the weekend. Analysts at Energy Aspects noted that ongoing escalation risks are likely to keep prices supported. Additionally, a significant U.S. crude stock draw, driven by hurricane-related production shutdowns, contributed to the upward momentum. Brent closed the week just below the $110 threshold.