Oil touches $110 a barrel for first time since May

Brent crude oil surged to $110 a barrel for the first time since May, driven by concerns over heightened Middle Eastern tensions potentially limiting supplies, according to wire reports. Investors also examined Russia's potential diesel supply to the global market. Brent futures closed at $109.86 a barrel, while U.S. WTI crude ended at $101.41 a barrel. Over the week, Brent increased by 4.9%, and WTI rose 10.4%.

A Saudi-led coalition announced the interception and destruction of a ballistic missile heading toward the Red Sea city of Yanbu, a vital port for Saudi Arabia's oil exports. The incident highlights efforts to maintain oil flow through alternative routes. Meanwhile, Russia's Ryazan oil refinery temporarily halted operations at a primary crude distillation unit following a drone attack, sparking worries about the country's capacity to supply diesel fuel to international markets.

Asian spot LNG prices reached their highest level in nearly four years due to attacks on vessels near the Strait of Hormuz and fierce competition between Europe and Asia for cargoes ahead of the winter season. The average LNG price for December deliveries to northeast Asia reached $29.30 per million British thermal units, up from $26.50 per mmBtu the previous week.

Despite improved transits through the Strait of Hormuz and loading at Qatar’s Ras Laffan facility, persistent attacks on tankers and safety concerns continue to support elevated prices.

In Europe, the Dutch TTF gas price closed at $28.86 per mmBtu, marking an 8.5% weekly increase. Even with warmer weather and a rebound in Gulf LNG flows to 30% of pre-conflict levels, Europe is set to enter winter with storage levels at a record low of 74%.