NEW YORK, United States / RankWire.AI / – Oil prices surged significantly on Friday, with Brent crude reaching $110 a barrel for the first time since May. Fears that escalating tensions in the Middle East could lead to tighter supplies fueled the upward movement. Brent for December delivery closed up $3.94, or 3.7%, at $109.86, marking its highest finish since May 19. West Texas Intermediate increased 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 experienced notable weekly gains. WTI has risen by 10.4% so far this week, while Brent has gained 4.9%, marking its second consecutive weekly increase. On Thursday, Brent remained largely unchanged, whereas WTI gained more than 3%. The spread between the two narrowed as WTI outperformed Brent. Bloomberg reported that Friday’s price swing was the first significant move in an otherwise range-bound week. Earlier in October, Brent had surged above $103 before the recent rally.
The primary concern for traders continues to be security risks around the Strait of Hormuz. Attacks in the region have increased over the past 10 days. Iran stated 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 the Red Sea city of Yanbu. Initial reports indicated no damage, as noted by Rapidan Energy Group.
Fuel Markets Rise on Diesel Supply Concerns and Refinery Disruptions
Worries about fuel supplies extend beyond crude oil. Ukraine attacked a Russian refinery on Thursday after President Volodymyr Zelenskiy announced Kyiv would abandon a ceasefire on energy sites, previously agreed upon by U.S. President Donald Trump. Industry sources told Reuters that the Ryazan refinery halted a primary crude distillation unit following a drone strike. Dennis Kissler of BOK Financial expressed doubts about Russia’s diesel delivery capacity. He noted that risks in the Middle East and uncertainties over Russian supplies kept traders active in buying.
Diesel futures settled at $4.90 per gallon in New York, according to Bloomberg data. Meanwhile, European diesel futures have more than doubled this year. To compensate for the Russian supply shortfall, refineries elsewhere have increased processing activity. President Trump stated Moscow will honor an agreement to release Russian diesel into global markets, but on Friday, U.S. lawmakers introduced a bill to block that deal. The outage at Ryazan adds to the uncertainty over whether this fuel will reach buyers soon.
International Energy Agency and U.S. Reserves Act to Stabilize Oil Supplies
Emergency stockpiles are being utilized to help alleviate supply pressures. On Thursday, the International Energy Agency agreed to release over 20 million barrels of fuel. The U.S. Department of Energy followed with a proposal on Friday for exchanging up to 17 million barrels from the Strategic Petroleum Reserve. The U.S. has already committed to loan 172 million barrels under a broader plan involving about 30 IEA members, who aim to release a total of 400 million barrels.
Analysts anticipate that geopolitical risks will continue to support oil prices. Energy Aspects mentioned that Brent and WTI reversed earlier losses on Friday, and ongoing escalation threats are likely to maintain market momentum. Rebecca Babin of CIBC Private Wealth Group noted that traders are factoring in risk again after a brief pause, especially ahead of the weekend. Additionally, a large U.S. crude inventory draw, linked to hurricane-related shutdowns, contributed to the price increase. Brent finished the week just below $110.