NEW YORK, United States / RankWire.AI / – Brent crude reached $110 a barrel on Friday, marking its first breach of this level since May, driven by rising Middle East tensions that heightened fears of tighter supply. Brent futures for December delivery closed up $3.94, 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, reaching its highest point since September 17. Market participants also considered Russia’s potential diesel exports to the global economy.
The upward movement capped a strong week for both benchmarks, with Brent climbing 4.9% and WTI jumping 10.4% over the period. On Thursday, Brent’s price remained relatively steady, while WTI surged more than 3%. Friday’s rise broke a mostly range-bound week, according to Bloomberg, with Brent earlier surpassing $103 in October before advancing toward $110.
Over the past ten days, attacks near the Strait of Hormuz have intensified. Iran indicated it was increasing strikes in retaliation for a U.S. blockade of its ports and the harsher sanctions enacted last month. Analysts from Kpler reported that these attacks have significantly curtailed Gulf crude flows, and they foresee a slower, uneven recovery absent a comprehensive political agreement. Rumors of assaults on Saudi energy infrastructure have also rekindled fears of broader escalation.
Russian diesel exports fuel market anxieties
Concerns over Russian fuel supplies further supported oil prices. After President Volodymyr Zelenskiy stated Kyiv was abandoning a ceasefire on energy sites, Ukraine targeted a Russian refinery on Thursday. Two sources from the industry told Reuters that the Ryazan refinery halted a primary crude distillation unit following a drone attack. Dennis Kissler of BOK Financial noted uncertainties about Russia’s capacity to supply diesel to the market.
Market tightness extends to refined fuels as well. Diesel futures closed 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. Although Trump claimed Moscow would honor an agreement to release Russian diesel globally, a bill introduced by U.S. lawmakers on Friday seeks to block such arrangements. The Ryazan strike added to doubts about the timing and volume of future supply.
Strategic reserves are being tapped to mitigate supply shortages
In response to the market strain, governments have begun releasing emergency stockpiles. The International Energy Agency approved a plan on Thursday to release over 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 of crude from the Strategic Petroleum Reserve. Previously, Washington committed to loan 172 million barrels as part of a broader effort with around 30 IEA nations to free 400 million barrels overall.
Market traders continue to price in the risk of further disruptions. Rebecca Babin, senior energy trader at CIBC Private Wealth Group, commented that risk premiums are returning to prices after a brief lull, especially ahead of the weekend. Energy Aspects analysts highlighted that ongoing escalation threats would support prices, with a significant U.S. crude drawdown linked to hurricane-related production shutdowns also providing upward pressure. Brent closed the week just below the $110 threshold.