NEW YORK, United States / RankWire.AI / – On Friday, oil prices surged significantly, with Brent crude reaching $110 a barrel for the first time since May. Fears that rising tensions in the Middle East could lead to tighter supplies fueled the increase. Brent for December delivery settled up $3.94, or 3.7%, at $109.86, marking its highest close since May 19. Meanwhile, West Texas Intermediate increased by $3.44, or 3.5%, to $101.41, its peak since September 17. Traders also evaluated Russia’s ability to supply diesel.
Both benchmarks experienced strong weekly gains, with WTI rising 10.4% so far this week and Brent climbing 4.9% for its second consecutive weekly increase. Brent remained relatively unchanged on Thursday, while WTI gained over 3%. The difference between the two narrowed as WTI outperformed Brent. Bloomberg noted that Friday’s market movement was the first sizable shift in an otherwise range-bound week. Earlier in October, Brent had surged above $103 before this latest advance.
Trader concerns continue to center around security threats in the Strait of Hormuz. Attacks in the region have increased over the past ten days, with Iran announcing intensified strikes in response to a U.S. blockade of its ports and the tougher sanctions imposed last month. According to Kpler analysts, these attacks have significantly reduced crude flows from the Gulf. A Saudi-led coalition reported intercepting a ballistic missile aimed at the Red Sea city of Yanbu, with initial reports indicating no damage, as per Rapidan Energy Group.
Refined fuel markets see upward pressure amid supply anxieties and refinery strikes
Concerns about supply have extended to refined products. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy stated Kyiv would abandon a ceasefire on energy sites 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 of BOK Financial mentioned that it remains uncertain how much diesel Russia can supply, adding that Middle East risks and doubts over Russian output continue to drive traders’ buying activity.
Diesel futures closed at $4.90 a gallon in New York, according to Bloomberg data. European diesel futures have more than doubled this year. Other regions’ refineries have increased processing to compensate for the Russian supply shortfall. Although Trump has claimed Moscow will fulfill its deal to release Russian diesel into global markets, U.S. lawmakers introduced a bill on Friday to block this arrangement. The outage at Ryazan adds to the uncertainty regarding whether this fuel will soon reach consumers.
Reserves and strategic stockpiles help mitigate supply disruptions
To address supply pressures, emergency stockpiles are being utilized. 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 to exchange up to 17 million barrels from the Strategic Petroleum Reserve. The U.S. had previously agreed to lend 172 million barrels as part of a broader effort by approximately 30 IEA members to release 400 million barrels.
Analysts anticipate that geopolitical risks will continue to support oil prices. Energy Aspects noted that Brent and WTI reversed earlier losses on Friday and predicted that ongoing escalation risks would sustain market strength. Rebecca Babin of CIBC Private Wealth Group said traders are factoring risk back in after a brief pause, especially ahead of the weekend. A significant U.S. crude inventory draw, linked to hurricane-related shutdowns, also contributed to the price support. Brent finished the week just below $110.