NEW YORK, United States / RankWire.AI / – Brent crude prices hit $110 a barrel on Friday for the first time since May, driven by rising fears of tighter supplies amid escalating Middle East conflicts. Brent futures for December settlement closed $3.94, or 3.7%, higher at $109.86, marking the highest closing level since May 19. Meanwhile, U.S. West Texas Intermediate crude for November delivery increased by $3.44, or 3.5%, to $101.41, the highest since September 17. Investors also considered Russia’s potential diesel exports to the global market.
The upward movement extended a strong week for both benchmarks. So far this week, Brent has increased by 4.9%, marking its second straight weekly gain, while WTI has surged 10.4%. On Thursday, Brent’s price remained relatively steady, whereas WTI gained more than 3%. The move on Friday broke a week characterized by range-bound trading, as reported by Bloomberg. Earlier in October, Brent topped $103 before the recent push toward $110.
Over the past 10 days, attacks near the Strait of Hormuz have intensified. Iran claimed it was increasing strikes in retaliation for a U.S. blockade of its ports and stricter sanctions introduced last month. Analysts at Kpler indicated these attacks have sharply curtailed Gulf crude flows and expect a slower, uneven recovery without a comprehensive political agreement. Rumors of strikes on Saudi energy infrastructure have also revived fears of a broader escalation.
Russian diesel exports fuel market concerns
Concerns about Russian fuel supplies contributed to the price rally. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy announced Kyiv was abandoning a previously agreed-upon energy-site ceasefire with the U.S. President Donald Trump. Two sources familiar with industry developments told Reuters that the Ryazan refinery halted a primary crude distillation unit following a drone attack. Dennis Kissler from BOK Financial noted that it remains uncertain how much diesel Russia can supply to the global market.
The tightening of fuel markets has paralleled crude oil prices. Diesel futures settled 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. President Trump stated that Moscow would follow through on a deal to release Russian diesel to global markets. However, U.S. lawmakers introduced a bill on Friday seeking to block that arrangement. The strike at Ryazan raised additional questions about the timing and volume of any further supplies.
Emergency reserves being tapped to alleviate supply pressures
In response to the market strain, governments have started releasing supplies from emergency stockpiles. 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 of crude from the Strategic Petroleum Reserve. Previously, Washington agreed to lend 172 million barrels as part of a broader initiative with 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, remarked that risk premiums are returning to prices after a brief lull, especially ahead of the weekend. Analysts at Energy Aspects stated that ongoing escalation risks would support prices, while a significant U.S. crude stock draw, tied to hurricane-related production outages, also contributed to the upward pressure. Brent concluded the week just below the $110 level.