Oil prices closed more than $3 higher on Friday, their highest in nearly six months, as Houthi attacks in Saudi Arabia heightened fears of Middle East supply disruptions.
Brent crude, the global benchmark, settled at $116.72 a barrel, up 3.14%, its highest since Apr. 29. West Texas Intermediate (WTI), the U.S. benchmark, closed at $103.38, up 4.43%.
Brent gained about 6% for the week.
Saudi Energy Infrastructure Under Threat
The rally followed intensified fighting between Saudi Arabia, the world’s largest crude exporter, and Yemen-based Houthis. Saudi Aramco ordered the evacuation of its Dhahran headquarters on Thursday.
Clashes escalated after the Iran-aligned Houthis pushed toward the Bab el-Mandeb Strait, a Red Sea shipping chokepoint, last month. The UAE also reported an oil spill off Umm Al Quwain. The tanker has not been identified.
Oil Surge Enters Midterm Debate
The price jump is also drawing political attention ahead of the Nov. 3 midterm elections.
Rep. Ted Lieu (D-Calif.) said in a post on X that gas and diesel prices “will continue to skyrocket” under President Donald Trump’s policies.
Surging energy prices is a key issue for this midterm.
Earlier this week, fuel expert Patrick De Haan said on X that national gasoline prices will stay above $4 a gallon and diesel above $6 before the midterms without clear U.S.-Iran and Ukraine-Russia de-escalation.
Beyond the election, some analysts see more upside risk. Helima Croft, head of global commodity strategy at RBC Capital Markets, told CNBC’s “Fast Money” that there is a “significant risk post-midterm” if Trump is pushed toward a tougher stance on Iran.
The national average price for regular gasoline was $4.29 a gallon on Friday, while diesel averaged $6.32, according to American Automobile Association data. Diesel’s record high of about $6.53 was set Sept. 22, while gasoline’s was around $5.02, set in June 2022.
U.S. Reserves and Supply Signals
On the supply side, the U.S. Department of Energy authorized an emergency exchange of up to 400,000 barrels from the Strategic Petroleum Reserve, already at its lowest since 1982, to address a disruption at Phillips 66’s (NYSE:PSX) Lake Charles refinery.
Baker Hughes Co. (NASDAQ:BKR) reported Friday that the U.S. oil and gas rig count held steady at 603 for the week ended Oct. 23, unchanged for a second straight week. Rig counts are watched as an early indicator of future U.S. output.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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