Brent crude touched $110 a barrel on Friday for the first time since May, as concerns grew over escalating tensions in the Middle East and their potential impact on oil supplies, alongside uncertainty over how much diesel Russia will be able to supply to global markets.
Brent futures settled $3.94, or 3.7%, higher at $109.86 a barrel, marking their highest closing level since May 19. US crude rose $3.44, or 3.5%, to $101.41 a barrel, its highest settlement since September 17.
Brent posted a weekly gain of 4.9%, while US crude advanced 10.4%, as supply concerns intensified following an increase in attacks near the Strait of Hormuz over the past 10 days.
Energy consultancy Energy Aspects said renewed fears of an escalation, amid reports of possible attacks on energy facilities in Saudi Arabia, supported oil prices. It warned that continued escalation risks could keep prices elevated.
Analysts at Kpler said intensified Iranian attacks had led to a sharp decline in crude flows from the Gulf. They expected shipping activity through the Strait of Hormuz to recover more slowly and unevenly in the absence of a comprehensive political agreement.
In Russia, the Ryazan refinery suspended operations at one of its primary crude distillation units following a drone attack, according to two industry sources cited by Reuters.
Meanwhile, the International Energy Agency approved the release of more than 20 million barrels of fuel into the market. The US Energy Department also announced a tender to exchange up to 17 million barrels of crude oil from the Strategic Petroleum Reserve.
Source: Reuters
