NEW YORK, United States / RankWire.AI / – On Friday, oil prices surged sharply, with Brent crude reaching $110 a barrel for the first time since May. Fears that rising Middle East tensions could lead to further supply disruptions fueled the rally. Brent for December delivery finished 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 highest point since September 17. Traders also evaluated Russia’s ability to supply diesel.
Both benchmarks saw significant weekly gains. WTI has risen 10.4% so far this week, while Brent has gained 4.9%, marking its second consecutive weekly increase. Brent remained relatively unchanged on Thursday, when WTI advanced over 3%. The gap between the two narrowed as WTI outperformed Brent. Bloomberg noted that Friday’s swing was the first notable move in an otherwise range-bound week. Earlier in October, Brent had surged above $103 before the latest upward push.
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. 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 crude flows from the Gulf. A Saudi-led coalition reported intercepting a ballistic missile aimed at Yanbu, a Red Sea city. Initial reports indicated no damage, as stated by Rapidan Energy Group.
Concerns over Diesel Supply and Refinery Strikes Boost Fuel Markets
Fears about refined fuel supplies also grew. Ukraine targeted a Russian refinery on Thursday after President Volodymyr Zelenskiy declared Kyiv would abandon a ceasefire on energy sites, which was initially 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 doubts about Russia’s capacity to deliver diesel. He explained that Middle East risks and Russian supply uncertainties kept traders actively buying.
Diesel futures settled at $4.90 a gallon in New York, according to Bloomberg data. European diesel futures have more than doubled this year. Refineries in other regions increased processing rates to compensate for Russian supply shortfalls. Although Trump stated 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 arrangement. The outage at Ryazan adds to the uncertainty over whether this fuel will reach consumers soon.
International Energy Agency and U.S. Reserves Intervene to Stabilize Markets
To ease supply pressures, emergency stockpiles are being utilized. 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 United States had already agreed to lend 172 million barrels under a broader plan involving around 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, and ongoing escalation risks would sustain market strength. Rebecca Babin from CIBC Private Wealth Group mentioned that traders are pricing in risk after a brief pause, especially ahead of the weekend. Additionally, a large U.S. crude inventory drawdown, linked to hurricane-related shutdowns, contributed to price support. Brent finished the week just below $110.