NEW YORK, United States / RankWire.AI / – On Friday, oil prices experienced a significant jump, with Brent crude reaching $110 per barrel for the first time since May. The rally was driven by fears that intensifying tensions in the Middle East could lead to further supply restrictions. Brent for December delivery closed up $3.94, or 3.7%, at $109.86, marking its highest close since May 19. Meanwhile, 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 achieved robust weekly gains. WTI has risen 10.4% this week, while Brent has gained 4.9%, marking its second consecutive weekly increase. On Thursday, Brent remained relatively steady, whereas WTI climbed more than 3%. The gap between the two narrowed as WTI outperformed Brent. Bloomberg noted that Friday’s price movement was the first notable shift in an otherwise range-bound week. Earlier in October, Brent had surged above $103 prior to the latest rally.
The primary concern for traders continues to be security threats around the Strait of Hormuz. Over the past 10 days, attacks in the region have increased, and Iran announced it was intensifying strikes in response to a U.S. blockade of its ports and the tougher sanctions imposed last month. According to Kpler analysts, these attacks have significantly reduced Gulf crude flows. Additionally, a Saudi-led coalition reported intercepting a ballistic missile aimed at Yanbu, a city on the Red Sea, with initial reports indicating no damage, as stated by Rapidan Energy Group.
Fuel Markets Rise as Diesel Supply Concerns and Refinery Strikes Grow
Supply worries have extended into refined fuels. On Thursday, Ukraine targeted a Russian refinery 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 attack. Dennis Kissler from BOK Financial noted the uncertainty surrounding Russia’s diesel deliveries, adding that risks in the Middle East and doubts over Russian supply continued to drive traders’ buying activity.
Diesel futures settled at $4.90 per gallon in New York, according to Bloomberg data. European diesel futures have more than doubled this year. To compensate for the Russian supply shortfall, refineries elsewhere have increased processing rates. While President Trump has stated that Moscow will honor a deal to release Russian diesel into global markets, U.S. lawmakers introduced a bill on Friday to block this arrangement. The outage at Ryazan has added to the uncertainty over whether this fuel will reach consumers promptly.
International Agencies and U.S. Reserves Act to Stabilize Supplies
To alleviate supply pressures, emergency stockpiles are being mobilized. 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 from the Strategic Petroleum Reserve. The U.S. had previously committed to lending 172 million barrels as part of a broader effort by approximately 30 IEA members to release a total of 400 million barrels.
Analysts believe that geopolitical risks will continue to support oil prices. Energy Aspects noted that Brent and WTI reversed earlier losses on Friday and that ongoing escalation risks would sustain the market. Rebecca Babin of CIBC Private Wealth Group mentioned that traders were re-pricing risk after a brief pause, especially ahead of the weekend. Additionally, a significant U.S. crude inventory draw, linked to hurricane-related shutdowns, contributed to the upward pressure. Brent concluded the week just below $110.