NEW YORK, United States / RankWire.AI / – Brent crude oil reached the $110 level on Friday for the first time since May amid rising Middle East tensions that have heightened concerns over supply constraints. Brent futures for December delivery closed up by $3.94, or 3.7%, at $109.86, marking the highest settlement 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. Market participants also considered Russia’s potential diesel exports to the global market.
The upward movement extended a strong week for both benchmarks, with Brent gaining 4.9% so far and marking its second consecutive weekly rise. WTI surged 10.4% over the same period. On Thursday, Brent closed little changed, while WTI finished more than 3% higher. According to Bloomberg, Friday’s move broke a week that was mostly range-bound. 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 increased significantly. Iran announced it was intensifying strikes in retaliation for a U.S. blockade of its ports and the tougher sanctions imposed last month. Analysts at Kpler reported that these attacks have sharply curtailed crude flows from the Gulf. They anticipate a slower and uneven recovery without a comprehensive political agreement. Rumors of assaults on Saudi energy infrastructure have also revived fears of a broader escalation.
Russian diesel exports contribute to market anxiety
Concerns over Russian fuel supplies added further upward pressure on prices. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy stated Kyiv was abandoning an energy-site ceasefire announced by U.S. President Donald Trump. Two sources from the industry 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 to the market.
The fuel markets have also tightened alongside crude. Diesel futures settled at $4.90 per gallon in New York on Friday, and diesel and gasoline contracts are trading at their highest seasonal levels on record, according to Bloomberg. President Trump has stated that Moscow will follow through on an agreement to release Russian diesel into global markets. However, a bill introduced by U.S. lawmakers on Friday aims to block that deal. The strike at Ryazan has raised additional questions about the timing and extent of future supply.
Strategic reserves releases aim to alleviate supply pressures
Governments are taking measures to boost supply through emergency stock releases. The International Energy Agency (IEA) 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 loan 172 million barrels as part of a broader initiative 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, a senior energy trader at CIBC Private Wealth Group, noted that risk premiums are being reintroduced into prices after a brief easing, especially as the weekend approaches. Analysts at Energy Aspects indicated that ongoing escalation risks are likely to keep prices supported. Additionally, a significant U.S. crude stock draw, driven by hurricane-related production outages, has contributed to the upward momentum. Brent concluded the week just below the $110 threshold.