NEW YORK, United States / RankWire.AI / – Oil prices climbed sharply on Friday, with Brent crude touching $110 a barrel for the first time since May. Worries that escalating Middle East tensions could further tighten supplies drove the rally. Brent for December delivery settled up $3.94, or 3.7%, at $109.86, its highest close since May 19. West Texas Intermediate rose $3.44, or 3.5%, to $101.41, its highest level since September 17. Traders also assessed Russia’s capacity to supply diesel.
Both benchmarks posted strong weekly gains. WTI has surged 10.4% so far this week, while Brent has added 4.9% for its second straight weekly rise. Brent was little changed on Thursday, when WTI gained more than 3%. The spread between the two benchmarks narrowed as WTI outpaced Brent. Bloomberg said Friday’s swing was the first sizeable move in an otherwise range-bound week. Brent had surged above $103 earlier in October before the latest advance.
Security risks around the Strait of Hormuz remain the main concern for traders. Attacks around the waterway have surged over the past 10 days, and Iran said it was intensifying strikes in response to a U.S. blockade of its ports and tougher sanctions imposed last month. Kpler analysts said the attacks had sharply cut Gulf crude flows. A Saudi-led coalition said it intercepted a ballistic missile aimed at the Red Sea city of Yanbu, with initial reports showing no damage, according to Rapidan Energy Group.
Diesel doubts and refinery strikes lift fuel markets
Supply worries extended to refined fuels. Ukraine hit a Russian refinery on Thursday after President Volodymyr Zelenskiy said 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. BOK Financial’s Dennis Kissler said it was questionable how much diesel Russia could deliver. He added that Middle East risks and Russian supply doubts kept traders buying.
Diesel futures settled at $4.90 a gallon in New York, Bloomberg data showed. European diesel futures have more than doubled this year. Refineries in other regions have increased processing to offset the shortfall in Russian supply. Trump has said Moscow will honor a deal to release Russian diesel into global markets. However, U.S. lawmakers introduced a bill on Friday to block the arrangement. The Ryazan outage added to uncertainty over whether that fuel will reach buyers soon.
IEA and U.S. reserves step in to cushion supply
Emergency stockpiles are being deployed to ease the strain. The International Energy Agency agreed on Thursday to release more than 20 million barrels of fuel. The U.S. Department of Energy followed on Friday with a request for proposals to exchange up to 17 million barrels from the Strategic Petroleum Reserve. The United States had already agreed to loan 172 million barrels under a broader plan by about 30 IEA members to release 400 million barrels.
Analysts expect geopolitical risk to keep supporting prices. Energy Aspects said Brent and WTI reversed earlier losses on Friday and that persistent escalation risks would keep the market supported. CIBC Private Wealth Group’s Rebecca Babin said traders were pricing risk back in after a brief pause, especially ahead of the weekend. A large U.S. crude inventory draw tied to hurricane-related shut-ins also supported prices. Brent closed the week just below $110.