Oil touches $110 a barrel for first time since May

Doha, Qatar - Brent crude oil reached a record high of $110 a barrel on Friday, April 28th, marking the first time since May, according to the Al-Attiyah Foundation's Weekly Energy Market Review. The spike in prices was driven by concerns over escalating tensions in the Middle East, which could further restrict oil supplies. Brent crude futures settled at $109.86 a barrel, while US WTI crude closed at $101.41 a barrel. Over the week, Brent rose 4.9% and WTI increased by 10.4%.

In an effort to ensure oil flows to international markets, a Saudi-led coalition intercepted and destroyed a ballistic missile launched towards the Red Sea city of Yanbu, a critical port for Saudi Arabia's bypass strategy of the Strait of Hormuz. However, Russia's Ryazan oil refinery, affected by a drone attack, has halted operations at a primary crude distillation unit, raising concerns about the country's ability to supply diesel fuel to global markets.

Asian spot liquefied natural gas (LNG) prices surged to their highest level in nearly four years, reaching $29.30 per million British thermal units for December deliveries into northeast Asia, up from $26.50 per mmBtu the previous week. The price surge was fueled by attacks on vessels in the Strait of Hormuz and intense competition between Europe and Asia for shipping cargoes ahead of the winter season.

Despite an uptick in transits through the Strait of Hormuz and increased loading at Qatar's Ras Laffan facility, persistent attacks on tankers and lingering uncertainties about safe passage continue to support high prices. In Europe, the Dutch TTF gas price settled at $28.86 per mmBtu, marking an 8.5% weekly gain. While warmer weather and a recovery in Gulf LNG flows have pushed European storage levels to 30% of pre-conflict levels, a record low of 74% still awaits the region as winter approaches.