Brent crude reaches $110 per barrel as supply concerns drive up oil prices

Brent crude touched $110 a barrel in New Delhi on October 17 for the first time since May, rising 3.56 percent to stand at 109.69 following a previous 3.7 percent climb. The price increase was driven by fading hopes for near-term supply relief and mounting trader bets on further gains amid renewed conflict in major export regions that tightened a fragile supply outlook.

Geopolitical tensions intensified as Iran-backed Houthi rebels continued missile and drone strikes on Saudi Arabia, and Russia and Ukraine targeted each other's energy infrastructure. In the United States, lawmakers introduced a bill to block a proposed deal to buy hundreds of millions of barrels of diesel from Russian reserves to avoid bolstering Moscow's war finances, following a reported strike on Russia's Ryazan refinery that suspended operations. Additionally, US President Donald Trump declined to rule out using the GBU-43/B Massive Ordnance Air Blast Bomb on Iran after the November 3 election, per a Newsmax report.

Looking ahead, a Goldman Sachs report predicts Brent crude will reach $90 a barrel in December 2026, marking a 6 percent increase from an 85 dollar forecast, driven by ongoing West Asia supply-side risks keeping time spreads high at just over $20. When the West Asia war began in late February, Brent crude was around $70 per barrel and later surpassed $125 due to disruptions in the Strait of Hormuz, which handles nearly 20 percent of global oil shipments, before reopening led to moderation and the subsequent return to the $110 mark.