NEW YORK, United States / RankWire.AI / – Brent crude reached $110 a barrel on Friday for the first time since May, driven by escalating tensions in the Middle East that heightened worries over tighter supplies. Brent futures for December settlement increased by $3.94, or 3.7%, to close at $109.86, marking the highest finish since May 19. Meanwhile, U.S. West Texas Intermediate crude for November delivery rose $3.44, or 3.5%, to $101.41, the highest since September 17. Investors also considered Russia’s potential diesel exports to the global market.
The surge capped a strong week for both benchmarks. Brent has climbed 4.9% so far this week, marking its second consecutive weekly gain, while WTI has surged 10.4% over the same period. On Thursday, Brent remained relatively steady, whereas WTI closed more than 3% higher. The move on Friday broke a mostly range-bound trading 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 reported 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 fears of broader escalation.
Russian diesel exports contribute to mounting market concerns
Uncertainty surrounding Russian fuel supplies has further supported prices. After President Volodymyr Zelenskiy announced Kyiv was abandoning a ceasefire on energy sites, Ukraine struck a Russian refinery on Thursday. Two industry sources told Reuters that the Ryazan refinery halted a primary crude distillation unit following a drone attack. Dennis Kissler of BOK Financial expressed doubt over how much diesel Russia can realistically supply to the market.
Tightening fuel markets accompany crude price increases. 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 stated that Moscow will follow through on an agreement to release Russian diesel to global markets. However, a bill introduced by U.S. lawmakers on Friday aims to block this arrangement. The strike on Ryazan has raised further questions about the timing of additional supply.
Strategic reserves are being tapped to mitigate supply disruptions
Governments have initiated releases from emergency stockpiles to ease supply pressures. 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 for exchanging up to 17 million barrels of crude from the Strategic Petroleum Reserve. Washington previously agreed to lend 172 million barrels as part of a broader initiative involving around 30 IEA countries, aiming 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 was being reintroduced into prices after a brief period of stability, especially heading into the weekend. Analysts at Energy Aspects highlighted that ongoing escalation risks would keep prices supported. Additionally, a significant drawdown in U.S. crude inventories related to hurricane-induced shutdowns contributed to the price strength. Brent concluded the week just below the $110 level.