Brent crude tops $110 for first time since May as supply fears mount

Brent crude moved above $110 a barrel for the first time since May, with traders seeing little prospect of near-term supply relief.

The move reflected diminishing expectations of an imminent improvement in supply, while broader market sentiment remained weighed down by supply concerns. Traders increased their bets on higher oil prices before the weekend.

Brent crude futures settled at $109.86 a barrel. US West Texas Intermediate crude topped $100 and finished at $101.41 a barrel.

For the week, Brent rose 4.9%, while WTI gained 10.4%.

Oil prices have risen over 70% this year as disruptions from conflicts in the Middle East and the war in Ukraine have constrained supply. The Russia-Ukraine conflict has disrupted energy infrastructure.

Houthi rebels backed by Iran have continued missile and drone attacks on Saudi Arabia. A Saudi-led coalition said it intercepted and destroyed a ballistic missile launched towards Yanbu, a Red Sea city.

Yanbu is a port central to Saudi Arabia's effort to keep oil flowing to international markets by bypassing the Strait of Hormuz.

In Russia, the Ryazan oil refinery suspended operations at a primary crude distillation unit after a drone attack on Thursday.

Gas markets were under similar pressure. Asian spot liquefied natural gas prices reached their highest level in nearly four years, with the average price for December delivery into northeast Asia at $29.30 per million British thermal units.

Europe will enter winter with storage at a record low of 74%. Attacks on vessels near the Strait of Hormuz and intensifying competition between Europe and Asia for cargoes kept the global gas market on edge ahead of winter.