NEW YORK, United States / RankWire.AI / – Brent crude reached $110 a barrel on Friday, marking the first time since May that prices have hit this level amid rising Middle East tensions that fuel fears of tighter supplies. Brent futures for December delivery closed $3.94 higher, or 3.7%, 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, the highest since September 17. Market participants also considered Russia’s potential diesel exports to the global market.
The surge extended a strong week for both benchmarks, with Brent climbing 4.9% so far, marking its second straight weekly gain. WTI has surged 10.4% over the same period. On Thursday, Brent saw little change, while WTI settled more than 3% higher. Friday’s move broke the week’s largely range-bound pattern, 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 increased significantly. Iran stated it was intensifying strikes in response to a U.S. blockade of its ports and stricter sanctions imposed last month. Analysts at Kpler indicated that these attacks have sharply curtailed Gulf crude flows, and they foresee a slower, uneven recovery without a comprehensive political agreement. Rumors of assaults on Saudi energy infrastructure have also revived concerns about a broader escalation.
Russian diesel supply concerns fuel market fears
Fears over Russian fuel exports added further upward pressure on prices. Ukraine hit a Russian refinery on Thursday after President Volodymyr Zelenskiy announced Kyiv was abandoning a ceasefire on energy sites, initially declared by U.S. President Donald Trump. Two sources told Reuters that the Ryazan refinery suspended a primary crude distillation unit following a drone attack. Dennis Kissler of BOK Financial mentioned that it remains uncertain how much diesel Russia can deliver to the market.
The fuel markets have also tightened alongside crude. 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. President Trump stated that Moscow will follow through on a deal to release Russian diesel to the global market. However, a bill introduced by U.S. lawmakers on Friday seeks to block that arrangement. The Ryazan strike has raised additional questions about the timing and scale of any further supply releases.
Strategic reserves released to mitigate supply disruptions
Governments have responded by releasing supplies from emergency reserves. The International Energy Agency approved on Thursday the release of over 20 million barrels of fuel. On Friday, the U.S. Department of Energy issued a proposal to exchange up to 17 million barrels of crude from the Strategic Petroleum Reserve. Previously, Washington agreed to loan 172 million barrels as part of a broader initiative with around 30 IEA member countries to release a total of 400 million barrels.
Market traders continue to factor in the risk of further disruptions. Rebecca Babin, senior energy trader at CIBC Private Wealth Group, noted that the market was reintroducing risk premiums after a brief reprieve, especially as the weekend approaches. Analysts at Energy Aspects emphasized that ongoing escalation risks are likely to keep prices supported. Additionally, a significant U.S. crude stock draw, driven by hurricane-related production shutdowns, provided extra support. Brent ended the week just below the $110 threshold.