Brent Nears $110 on Middle East Supply Concerns

By Adedapo Adesanya

Brent crude neared $110 a barrel on Friday, gaining $3.94 or 3.7 per cent to trade at $109.86 per barrel, on worries that escalating ‌tensions in the Middle East could further tighten supplies.

Also, US West Texas Intermediate (WTI) crude futures chalked up $3.44 or 3.5 per cent to quote at $101.41, as escalation fears resurfaced amid rumours of attacks on Saudi energy infrastructure while Israel reports suggest Iran may be preparing a pre-emptive strike following ⁠unusual military movements detected by Western intelligence.

For the week, Brent rose 4.9 per cent and WTI 10.4 per cent.

A Saudi-led coalition said it intercepted and destroyed a ballistic missile launched towards the Red Sea city of Yanbu. The port is critical for Saudi Arabia’s efforts to bypass the Strait of Hormuz and keep oil flowing to international markets.

Supply concerns also increased as attacks around the Strait of Hormuz surged over the past 10 days, with Iran saying it was stepping up strikes in response to the US blockade of its ports and tougher sanctions introduced last month.

Kpler analysts said intensified Iranian attacks had sharply reduced Gulf crude flows, warning that oil shipments through the Strait of Hormuz would recover more slowly and unevenly without a comprehensive political agreement.

Ukraine struck a Russian oil refinery on Thursday after President Volodymyr Zelenskiy said it was abandoning a ceasefire covering energy facilities announced by US President Donald Trump, criticising the US willingness to strike deals with Russia.

Russia’s Ryazan oil refinery has suspended operations at a primary crude distillation unit following a drone attack in the region.

To increase supply, the International Energy Agency (IEA) agreed on Thursday to release more than 20 million barrels of fuel into the market.

The US Department of Energy also issued a request for proposals on Friday for an exchange of up to 17 million barrels of crude oil from the country’s Strategic Petroleum Reserve.

The US had previously agreed to release 172 million barrels from the reserve as part of a broader deal involving about 30 International Energy Agency member countries to release a combined 400 million barrels from strategic reserves worldwide.