NEW YORK, United States / RankWire.AI / – Oil prices surged notably on Friday, with Brent crude reaching $110 a barrel for the first time since May. Rising fears that escalating tensions in the Middle East could further tighten supply contributed to the rally. Brent for December delivery closed up $3.94, or 3.7%, at $109.86, marking its highest finish since May 19. West Texas Intermediate increased by $3.44, or 3.5%, to $101.41, its peak since September 17. Market participants also evaluated Russia’s ability to supply diesel.
Both benchmarks registered strong weekly gains. WTI has risen 10.4% so far this week, while Brent has gained 4.9% for its second consecutive weekly increase. Brent remained relatively unchanged on Thursday, when WTI advanced more than 3%. The spread between the two narrowed as WTI outperformed Brent. Bloomberg noted that Friday’s price movement was the first significant shift in an otherwise range-bound week. Earlier in October, Brent had surged above $103 before the latest upward move.
The main concern for traders continues to be security threats around the Strait of Hormuz. Attacks in the region have increased over the past 10 days, with Iran stating it was intensifying strikes in response to a U.S. blockade of its ports and stricter sanctions imposed last month. Kpler analysts reported that these attacks have significantly reduced Gulf crude flows. Additionally, a Saudi-led coalition announced it intercepted a ballistic missile aimed at the Red Sea city of Yanbu, with initial reports indicating no damage, according to Rapidan Energy Group.
Refined fuel markets supported by diesel concerns and refinery disruptions
Concerns over supply have extended to refined fuels as well. Ukraine attacked a Russian refinery on Thursday after President Volodymyr Zelenskiy declared Kyiv would abandon an energy-site ceasefire announced by U.S. President Donald Trump. Industry sources told Reuters that the Ryazan refinery halted a primary crude distillation unit following a drone strike. BOK Financial’s Dennis Kissler questioned how much diesel Russia could deliver, adding that risks in the Middle East and doubts about Russian supply kept traders active in buying.
Diesel futures settled at $4.90 a gallon in New York, according to Bloomberg. European diesel futures have more than doubled this year. Other regions’ refineries increased processing rates to compensate for the Russian supply shortfall. President Trump has stated that Moscow will honor a deal to release Russian diesel into global markets, but a bill introduced by U.S. lawmakers on Friday aims to block that arrangement. The outage at Ryazan adds to the uncertainty over whether this fuel will soon reach consumers.
International and U.S. reserves step up to stabilize supplies
Strategic stockpiles are being activated to ease the supply strain. The International Energy Agency agreed on Thursday to release over 20 million barrels of fuel. The U.S. Department of Energy followed suit on Friday by issuing a request for proposals to exchange up to 17 million barrels from the Strategic Petroleum Reserve. The U.S. had already agreed to lend 172 million barrels under a broader plan involving about 30 IEA members to release 400 million barrels.
Analysts anticipate that geopolitical risks will continue to support higher prices. Energy Aspects noted that Brent and WTI reversed earlier losses on Friday, with ongoing escalation risks keeping the market buoyant. Rebecca Babin of CIBC Private Wealth Group mentioned that traders were factoring in risks again after a brief pause, especially ahead of the weekend. Additionally, a large U.S. crude inventory draw, linked to hurricane-related shutdowns, also contributed to the price increase. Brent finished the week just below $110.