NEW YORK, United States / RankWire.AI / – Brent crude hit $110 a barrel on Friday, marking its first breach of this level since May as rising Middle East tensions sparked concerns over tighter supplies. Brent futures for December delivery closed up by $3.94, or 3.7%, at $109.86, the highest closing price 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 market.
The upward movement extended a robust week for both benchmarks. Brent has gained 4.9% so far this week, marking its second straight weekly rise. WTI has surged by 10.4% over the same period. On Thursday, Brent’s price remained relatively stable while WTI settled more than 3% higher. Friday’s surge broke a mostly range-bound week, according to Bloomberg. Earlier in October, Brent had topped $103 before the recent push toward $110.
Over the past ten days, attacks near the Strait of Hormuz have significantly increased. Iran stated it was intensifying strikes in response to a U.S. blockade of its ports and the stricter sanctions introduced last month. According to analysts at Kpler, these attacks have drastically reduced crude flows from the Gulf. They predict a slower, uneven recovery without a comprehensive political agreement. Rumors of assaults on Saudi energy infrastructure have also revived fears of broader escalation.
Concerns Rise Over Russian Diesel Supplies Contributing to Market Volatility
Uncertainty surrounding Russian fuel exports added further upward pressure on prices. Ukraine targeted a Russian refinery on Thursday following President Volodymyr Zelenskiy’s statement that Kyiv was abandoning a ceasefire on energy sites, initially announced by U.S. President Donald Trump. Two industry sources told Reuters that the Ryazan refinery halted a primary crude distillation unit after a drone attack. Dennis Kissler from BOK Financial noted that it remains uncertain how much diesel Russia can deliver to the market.
The fuel markets have also tightened alongside crude prices. Diesel futures settled at $4.90 a gallon in New York on Friday, and contracts for diesel and gasoline are trading at their highest seasonal levels on record, according to Bloomberg. U.S. President Trump has stated that Moscow will adhere to a deal to release Russian diesel to global markets. However, a bill introduced by U.S. lawmakers on Friday aims to block that arrangement. The strike on the Ryazan refinery has raised additional questions regarding the timing and volume of any further supply.
Strategic Reserves Are Being Tapped to Alleviate Supply Constraints
Governments worldwide have taken steps to bolster supply through emergency stock releases. The International Energy Agency agreed on Thursday to release over 20 million barrels of fuel. Additionally, on Friday, the U.S. Department of Energy issued a request for proposals to exchange up to 17 million barrels of crude from the Strategic Petroleum Reserve. Previously, Washington committed to lending 172 million barrels as part of a broader plan involving around 30 IEA member countries 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, stated that risk premiums are returning to the market after a brief decline, especially as the weekend approaches. According to analysts at Energy Aspects, ongoing escalation risks are likely to support prices. A significant U.S. crude stock draw, driven by hurricane-related production shutdowns, also contributed upward pressure. Brent concluded the week just below the $110 level.