Crude oil extended its rally to surpass $92 per barrel on Friday, driven by tightening supply conditions and rising geopolitical risks across key energy-producing regions. The surge reflects deepening concerns over global energy security.
- Brent crude surpassed $92.35 per barrel, highest since late 2023
- WTI rose to $89.71, up 2.4% on the day
- Libya’s output dropped by 120,000 bpd due to southern conflict
- OECD oil inventories fell by 3.2 million barrels last week
- U.S. crude output held at 13.1 million bpd
- CME oil volatility index jumped 18% in two weeks
Global crude prices climbed to $92.35 per barrel on Friday, marking the highest level since late 2023, as supply disruptions and escalating regional instability intensified. Brent crude futures rose 2.6% on the day, while West Texas Intermediate (WTI) gained 2.4%, reaching $89.71. The momentum followed a series of production interruptions in the Middle East and North Africa, with output in Libya declining by 120,000 barrels per day due to renewed conflict in the southern oil fields. Meanwhile, tensions in the Red Sea continue to disrupt shipping lanes, increasing freight costs and delaying deliveries to European and Asian refineries. The rally underscores growing market anxiety over energy resilience. Global oil inventories in OECD nations fell by 3.2 million barrels last week, according to preliminary estimates, narrowing the buffer against future shocks. At the same time, U.S. crude production remained stagnant at 13.1 million barrels per day, failing to keep pace with demand growth in Asia and Europe. Analysts note that refining margins in Europe have widened to $15.80 per barrel, signaling strong demand but limited supply flexibility. Market participants are increasingly factoring in supply risks, with the CME Group’s oil volatility index rising 18% over the past two weeks. Energy traders are now pricing in a 41% probability of a global supply deficit in Q2 2026, up from 27% in early February. This risk premium is reflected in forward curves, where prices for June and July delivery contracts have outpaced spot values by over $6 per barrel. The surge has broad implications. Energy-importing nations, particularly in Southeast Asia and South America, are facing higher fuel costs, potentially dampening economic growth. Oil-producing economies such as Saudi Arabia and Russia are experiencing increased revenue forecasts, though they remain cautious about long-term investment due to policy uncertainty. Global equity markets have reacted with mixed signals, with energy sector indices rising 4.1% over the week, while broader indices saw modest declines amid inflation fears.