NEW YORK, United States / RankWire.AI / – On Friday, oil prices experienced a significant rise, with Brent crude reaching $110 per barrel for the first time since May. Fears that escalating tensions in the Middle East could tighten supply further fueled the rally. Brent for December delivery increased by $3.94, or 3.7%, closing at $109.86, marking its highest close since May 19. Meanwhile, West Texas Intermediate (WTI) climbed by $3.44, or 3.5%, to $101.41, its peak since September 17. Traders also evaluated Russia’s ability to supply diesel.
Both benchmarks registered strong weekly gains, with WTI soaring 10.4% this week and Brent adding 4.9%, marking its second consecutive weekly increase. Brent remained relatively stable on Thursday, while WTI gained more than 3%. The gap between the two narrowed as WTI outpaced Brent. Bloomberg noted that Friday’s shift was the first notable movement in a week that otherwise saw prices fluctuate within a range. Earlier in October, Brent had surged above $103 before the latest upward move.
Traders remain most concerned about security threats around the Strait of Hormuz. Over the past 10 days, attacks in the region have increased, with Iran announcing intensified strikes in response to a U.S. blockade of its ports and stricter sanctions imposed last month. According to Kpler analysts, these attacks have significantly disrupted Gulf crude flows. Additionally, a Saudi-led coalition reported intercepting a ballistic missile aimed at the Red Sea city of Yanbu, with initial reports indicating no damage, as stated by Rapidan Energy Group.
Refined fuel markets boosted by diesel doubts and refinery disruptions
Concerns over supply also impacted refined fuels. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy declared Kyiv would abandon an energy-site ceasefire announced by U.S. President Donald Trump. Reuters sources revealed that the Ryazan refinery halted a primary crude distillation unit following a drone attack. Dennis Kissler from BOK Financial commented that the extent of Russia’s diesel supply was uncertain, emphasizing that Middle East risks and Russian supply doubts continued to drive buying activity among traders.
Diesel futures settled at $4.90 per gallon in New York, according to Bloomberg. European diesel futures have more than doubled this year. To compensate for Russian supply shortfalls, refineries elsewhere have increased processing. While Trump claimed Moscow would honor a deal to release Russian diesel into global markets, a bill introduced by U.S. lawmakers on Friday aims to block that plan. The outage at Ryazan adds to the uncertainty about when this fuel might reach consumers.
International reserves and U.S. stockpiles help stabilize supply
In response to the supply pressure, emergency stockpiles are being utilized. The International Energy Agency agreed on Thursday to release over 20 million barrels of fuel, while the U.S. Department of Energy issued a request for proposals on Friday to exchange up to 17 million barrels from the Strategic Petroleum Reserve. The U.S. had previously agreed to lend 172 million barrels as part of a broader effort by approximately 30 IEA members to release 400 million barrels.
Analysts believe geopolitical risks will continue to support prices. Energy Aspects noted that Brent and WTI reversed earlier losses on Friday and suggested that ongoing escalation risks would sustain the market. Rebecca Babin of CIBC Private Wealth Group added that traders were factoring in risk after a brief pause, especially ahead of the weekend. Additionally, a large U.S. crude inventory draw, related to hurricane-related shutdowns, also helped bolster prices. Brent finished the week just below $110.