Brent crude oil prices surged to $110 a barrel on Friday, marking the highest level since May. The spike came amid growing concerns over tightening supplies due to escalating tensions in the Middle East. Investors also weighed the potential impact of Russia’s ability to supply diesel to global markets following a drone attack on its Ryazan oil refinery.
A Saudi-led coalition reported intercepting and destroying a ballistic missile aimed at the Red Sea city of Yanbu. The port is vital for Saudi Arabia’s efforts to maintain oil exports through alternative routes, bypassing the Strait of Hormuz.
Meanwhile, Asian spot LNG prices climbed to their highest point in nearly four years. The rise was driven by attacks on vessels near the Strait of Hormuz and intense competition between Europe and Asia for LNG cargoes ahead of winter. The average price for December delivery into northeast Asia reached $29.30 per mmBtu, up from $26.50 the previous week.
In Europe, the Dutch TTF gas price settled at $28.86 per mmBtu, reflecting an 8.5% weekly gain. Despite some recovery in Gulf LNG flows and warmer weather, Europe’s gas storage levels remain at a record low of 74% as winter approaches.