NEW YORK, United States / RankWire.AI / – On Friday, oil prices surged significantly, with Brent crude reaching $110 a barrel for the first time since May. Concerns over escalating Middle East conflicts fueling fears of tighter supplies drove the price jump. Brent for December delivery increased by $3.94, or 3.7%, closing at $109.86, marking its highest since May 19. West Texas Intermediate (WTI) rose by $3.44, or 3.5%, to $101.41, its top level since September 17. Traders also evaluated Russia’s ability to supply diesel.
Both benchmarks experienced strong weekly gains. WTI has climbed 10.4% so far this week, while Brent has increased by 4.9%, marking its second consecutive weekly rise. On Thursday, Brent was relatively steady, whereas WTI gained more than 3%. The gap between the two narrowed as WTI outperformed Brent. Bloomberg noted that Friday’s swing was the first notable movement in a mostly range-bound week. Earlier in October, Brent had surged above $103 before the recent advance.
The main concern for traders remains the security risks around the Strait of Hormuz. Attacks in the region have increased over the past 10 days. Iran announced it was intensifying strikes in response to a U.S. blockade of its ports and stricter sanctions imposed last month. According to Kpler analysts, these attacks have sharply reduced Gulf crude flows. A Saudi-led coalition reported intercepting a ballistic missile aimed at Yanbu in the Red Sea, with initial reports indicating no damage, per Rapidan Energy Group.
Fuel Markets Rise as Diesel Supply Worries and Refinery Strikes Persist
Concerns about fuel supply extend beyond crude oil. Ukraine attacked a Russian refinery on Thursday after President Volodymyr Zelenskiy stated 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 of BOK Financial said it was uncertain how much diesel Russia can deliver. He added that risks in the Middle East and doubts about Russian supplies kept traders active in buying.
Diesel futures closed at $4.90 a gallon in New York, according to Bloomberg data. European diesel futures have more than doubled this year. Refineries elsewhere have increased processing to compensate for Russian supply shortfalls. U.S. officials have stated Moscow will honor a deal to release Russian diesel into global markets. However, a bill introduced by U.S. lawmakers on Friday aims to block that agreement. The outage at Ryazan adds to the uncertainty about whether the fuel will reach markets soon.
Emergency Reserves and International Agencies Act to Stabilize Supply
In response to supply concerns, emergency stockpiles are being tapped. The International Energy Agency (IEA) announced on Thursday it would 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. already agreed to lend 172 million barrels under a broader plan involving about 30 IEA members, aiming to release a total of 400 million barrels.
Analysts believe geopolitical risks will continue to support prices. Energy Aspects noted that Brent and WTI reversed earlier losses on Friday. Persistent escalation risks are expected to keep the market supported. Rebecca Babin from CIBC Private Wealth Group said traders are factoring in risk again after a brief pause, especially ahead of the weekend. Additionally, hurricane-related shutdowns led to a significant U.S. crude inventory draw, further boosting prices. Brent finished the week just below $110.