Why Oil Prices Jumped Thursday and Fell Friday

Oil prices surged on Thursday, Oct. 1, as traders weighed the risk of tighter supplies of diesel and other refined fuels against renewed threats to shipping in the Middle East. On Friday, plans to release emergency fuel and crude stocks helped ease some of that concern. But the retreat was uneven: Brent finished almost flat, while U.S. benchmark WTI fell more sharply.

What drove Thursday’s jump?

The pressure was concentrated in refined fuels, particularly diesel. Reports said Chinese refiners had paused or canceled some October fuel exports, while Russia extended restrictions on diesel exports. Both developments raised concerns that fewer products would be available to importers. 4614

Geopolitical risks added to the worry. Reports of additional U.S. military forces heading to the region coincided with attacks on tankers transiting the Strait of Hormuz. Those events revived concerns that oil shipments could be disrupted, even as reporting said crude flows from the Middle East had largely recovered to prewar levels. 913

The result was a sharp Thursday close: Brent rose 4.4% to $102.31 a barrel, while WTI climbed 2.7% to $92.87. 9

Why did prices ease Friday?

The prospect of additional emergency supplies offered a counterweight to the export and shipping risks. On Friday, the G7 announced plans to release 100 million barrels of crude and diesel reserves over four months, with a substantial diesel release planned early in the process. The move helped ease concerns about tight fuel supplies. 7

The settlement figures show that Brent and WTI did not fall by the same amount. Brent slipped 6 cents to $102.25 a barrel; WTI dropped $1.76 to $91.11. 7

Read the closing prices, not just Friday’s early quotes

Some reports during Friday’s trading described prices that were higher—or lower—than the final settlements. For example, early reports put Brent at $102.60 and WTI at $93.14, while another report recorded lower prices later in the session. These were snapshots taken at different times, not the closing prices. 110

The week’s moves reflect the tension between two kinds of risk: a shortage of refined fuels, especially diesel, and the possibility that renewed conflict could threaten shipments. Reserve releases eased the first concern, but the reported attacks and military developments kept the supply outlook uncertain.