NEW YORK, United States / RankWire.AI / – The International Energy Agency (IEA) announced on Thursday that emergency stockpiles are being activated to help mitigate the ongoing supply disruptions. The agency agreed to release more than 20 million barrels of fuel, while the U.S. Department of Energy issued a call on Friday for proposals to swap up to 17 million barrels from the Strategic Petroleum Reserve. Additionally, the United States has already committed to lending 172 million barrels as part of a broader initiative by about 30 IEA members to release a total of 400 million barrels.
Oil prices experienced a sharp rise on Friday, with Brent crude reaching $110 per barrel for the first time since May. The surge was driven by concerns over escalating Middle East tensions potentially tightening supply further. Brent for December settlement increased by $3.94, or 3.7%, to close at $109.86, marking its highest finish since May 19. Meanwhile, West Texas Intermediate climbed $3.44, or 3.5%, to $101.41, its peak since September 17. Market participants also evaluated Russia’s ability to supply diesel.
Both benchmarks posted notable weekly gains. WTI has jumped 10.4% this week, while Brent has gained 4.9% for the second consecutive week of growth. Brent’s price remained relatively stable on Thursday, when WTI surged more than 3%. The gap between the two benchmarks narrowed as WTI outpaced Brent. Bloomberg noted that Friday’s fluctuation marked the first significant move in a week that otherwise saw prices stay within a range. Earlier in October, Brent had surged above $103 before the latest advance.
Traders remain most concerned about security risks in the Strait of Hormuz. Over the past 10 days, attacks around the waterway have increased, with Iran claiming it is intensifying strikes in response to a U.S. blockade of its ports and the tougher sanctions imposed last month. According to Kpler analysts, these attacks have sharply reduced Gulf crude flows. A coalition led by Saudi Arabia reported intercepting a ballistic missile aimed at the Red Sea city of Yanbu, with initial reports indicating no damage, as stated by Rapidan Energy Group.
Fuel markets lifted by diesel concerns and refinery disruptions
Worries over fuel supplies have extended into refined products. On Thursday, Ukraine struck a Russian refinery after President Volodymyr Zelenskiy announced Kyiv would abandon a ceasefire on energy-site operations previously declared by U.S. President Donald Trump. Industry sources told Reuters that the Ryazan refinery stopped a primary crude distillation unit following a drone attack. Dennis Kissler from BOK Financial commented that it was uncertain how much diesel Russia would be able to supply. He added that risks in the Middle East and doubts about Russian exports kept traders engaged in buying.
Diesel futures settled at $4.90 per gallon in New York, according to Bloomberg data. Diesel futures in Europe have more than doubled this year. Other regions’ refineries have increased processing capacity to compensate for the Russian shortfall. Although Trump stated Moscow would honor a deal to release Russian diesel into global markets, U.S. lawmakers introduced a bill on Friday to block that agreement. The outage at Ryazan adds to the uncertainty over whether that fuel will reach consumers soon.
Strategic reserves and geopolitical risks support oil prices
In response to the ongoing supply concerns, strategic reserves are being tapped. The IEA agreed on Thursday to release over 20 million barrels of fuel, and the U.S. Department of Energy followed with a proposal on Friday to exchange up to 17 million barrels from the Strategic Petroleum Reserve. The U.S. had already committed to loan 172 million barrels under a larger plan involving about 30 IEA members to release a total of 400 million barrels.
Analysts anticipate that geopolitical tensions will continue to support prices. Energy Aspects noted that both Brent and WTI reversed earlier declines on Friday, with persistent escalation risks likely maintaining market strength. Rebecca Babin from CIBC Private Wealth Group pointed out that traders were re-evaluating risks after a brief pause, especially ahead of the weekend. Additionally, a large U.S. crude inventory drawdown, linked to hurricane-related shutdowns, further bolstered prices. Brent closed the week just below $110.