NEW YORK, United States / RankWire.AI / – Brent crude prices hit $110 a barrel on Friday, marking the first time since May that the benchmark surpassed this level as geopolitical tensions in the Middle East intensified, raising fears of tighter supplies. Brent futures for December delivery 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 its highest point since September 17. Investors also considered the potential extent of diesel Russia might supply to the global market.
The surge extended a robust week for both benchmarks, with Brent climbing 4.9%, marking its second consecutive weekly gain. WTI gained 10.4% over the same period. On Thursday, Brent prices remained relatively unchanged, while WTI settled more than 3% higher, breaking a week of mostly stable trading, according to Bloomberg. Earlier in October, Brent had topped $103 before the recent push toward $110.
Over the past 10 days, attacks around the Strait of Hormuz have surged. Iran announced it was intensifying strikes in response to a U.S. blockade of its ports and the stricter sanctions imposed last month. Analysts at Kpler noted that these attacks have significantly reduced Gulf crude flows, and they expect a slower, uneven recovery without a comprehensive political agreement. Rumors of attacks on Saudi energy infrastructure have also rekindled fears of a broader escalation.
Russian diesel exports fuel market worries
Concerns over Russian fuel supplies have provided additional upward pressure on prices. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy stated Kyiv was abandoning an energy-site ceasefire 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 global market.
Fuel markets are tightening alongside crude. Diesel futures settled at $4.90 a gallon in New York on Friday, and diesel and gasoline contracts are trading at their highest seasonal levels on record, according to Bloomberg. U.S. President Trump has indicated that Moscow will follow through on a deal 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 further complicates the timing of any additional supply.
Strategic reserves are being tapped to ease supply pressures
In response to supply concerns, governments are releasing fuel from emergency reserves. The International Energy Agency agreed on Thursday to release more than 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 with about 30 IEA 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, stated that the market was reintroducing risk premiums after a brief lull, especially heading into the weekend. Analysts at Energy Aspects noted 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 concluded the week just below the $110 mark.