NEW YORK, United States / RankWire.AI / – Brent crude touched $110 a barrel on Friday for the first time since May as escalating Middle East tensions raised fears of tighter supplies. Brent futures for December delivery settled $3.94, or 3.7%, higher at $109.86, the highest close since May 19. 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 weighed how much diesel Russia could supply to the global market.
The rally extended a strong week for both benchmarks. Brent has gained 4.9% so far this week, its second consecutive weekly increase. WTI has jumped 10.4% over the same period. On Thursday, Brent finished little changed while WTI settled more than 3% higher. Friday’s move broke a largely range-bound week, according to Bloomberg. Brent had topped $103 earlier in October before the latest push toward $110.
Attacks around the Strait of Hormuz have surged over the past 10 days. Iran said it was stepping up strikes in response to a U.S. blockade of its ports and tougher sanctions introduced last month. Analysts at Kpler said the attacks had sharply reduced Gulf crude flows. They expect a slower and uneven recovery without a comprehensive political deal. Rumors of attacks on Saudi energy infrastructure also revived fears of a wider escalation.
Russian diesel supply adds to market concerns
Doubts over Russian fuel supplies added further support to prices. Ukraine struck a Russian refinery on Thursday after President Volodymyr Zelenskiy said Kyiv was abandoning an energy-site ceasefire announced by U.S. President Donald Trump. Two industry sources told Reuters that the Ryazan refinery suspended a primary crude distillation unit after a drone attack. Dennis Kissler of BOK Financial said it remained questionable how much diesel Russia could deliver to the market.
Fuel markets have tightened alongside crude. Diesel futures settled at $4.90 a gallon in New York on Friday, and diesel and gasoline contracts are trading at their highest seasonal levels on record, according to Bloomberg. Trump has said Moscow will follow through on a deal to release Russian diesel to global markets. U.S. lawmakers introduced a bill on Friday that seeks to block that arrangement. The Ryazan strike raised further questions over the timing of any additional supply.
Emergency stock releases aim to ease supply strain
Governments have moved to add supply from emergency reserves. The International Energy Agency agreed on Thursday to release more than 20 million barrels of fuel. On Friday, the U.S. Department of Energy issued a request for proposals for an exchange of up to 17 million barrels of crude from the Strategic Petroleum Reserve. Washington had previously agreed to loan 172 million barrels as part of a wider plan with about 30 IEA countries to release 400 million barrels.
Traders are still pricing in the risk of further disruption. Rebecca Babin, senior energy trader at CIBC Private Wealth Group, said the market was adding risk back into prices after a brief reprieve, particularly heading into the weekend. Analysts at Energy Aspects said persistent escalation risks would keep prices supported. A large U.S. crude stock draw linked to hurricane-related production shut-ins also lent support. Brent ended the week just below the $110 mark.
