NEW YORK, United States / RankWire.AI / – Oil prices surged significantly on Friday, with Brent crude reaching $110 a barrel for the first time since May. Concerns that escalating tensions in the Middle East could lead to tighter supplies fueled this upward move. Brent for December delivery closed up by $3.94, or 3.7%, at $109.86, marking its highest finish since May 19. Meanwhile, West Texas Intermediate increased by $3.44, or 3.5%, to $101.41, its highest point since September 17. Market participants also evaluated Russia’s ability to supply diesel.
Both benchmarks recorded strong weekly gains. WTI has risen by 10.4% so far this week, while Brent has gained 4.9%, marking its second consecutive weekly increase. Brent remained relatively unchanged on Thursday, when WTI advanced more than 3%. The gap between the two benchmarks narrowed as WTI outperformed Brent. Bloomberg noted that Friday’s swing was the first substantial move in a week that otherwise traded within a range. Earlier in October, Brent had surged above $103 before the latest rally.
The primary concern for traders continues to be security risks around the Strait of Hormuz. Attacks in the region have increased over the past 10 days, and Iran announced it was intensifying strikes in response to a U.S. blockade of its ports and the tougher sanctions imposed last month. Analysts from Kpler indicated that these attacks have sharply reduced crude flows from the Gulf. Additionally, a Saudi-led coalition claimed it intercepted a ballistic missile aimed at Yanbu, a city on the Red Sea, with initial reports indicating no damage, according to Rapidan Energy Group.
Fuel markets boosted by diesel uncertainties and refinery disruptions
Concerns over fuel supplies have also grown. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy stated Kyiv would abandon the energy-site ceasefire previously announced by U.S. President Donald Trump. Industry sources told Reuters that the Ryazan refinery halted a primary crude distillation unit following a drone attack. Dennis Kissler from BOK Financial expressed doubts about Russia’s capacity to deliver diesel, adding that ongoing risks in the Middle East and uncertainties about Russian supplies kept traders active.
Diesel futures settled at $4.90 a gallon in New York, according to Bloomberg data. Diesel futures in Europe have more than doubled this year. Refineries elsewhere have increased processing to offset the Russian supply shortfall. Despite U.S. assurances that Moscow will honor its deal to release Russian diesel into global markets, a bill introduced on Friday by U.S. lawmakers aims to block this agreement. The outage at the Ryazan refinery has added to the uncertainty over whether this fuel will reach global markets soon.
Strategic reserves and international agencies step in to stabilize supply
In response to the mounting supply concerns, emergency stockpiles are being utilized. The International Energy Agency (IEA) agreed on Thursday to release more than 20 million barrels of fuel. On Friday, the U.S. Department of Energy issued a call for proposals to exchange up to 17 million barrels from the Strategic Petroleum Reserve. The U.S. has already committed to lending 172 million barrels as part of a broader effort by approximately 30 IEA member countries to release a total of 400 million barrels.
Analysts believe that geopolitical risks will continue to support oil prices. Energy Aspects noted that Brent and WTI reversed earlier losses on Friday, with ongoing escalation risks likely to sustain the market. Rebecca Babin of CIBC Private Wealth Group stated that traders are factoring risk back into prices following a brief pause, especially ahead of the weekend. Additionally, a significant U.S. crude inventory draw, linked to hurricane-related shutdowns, also contributed to the upward pressure. Brent finished the week just below $110.