International crude oil prices rose above $116 per barrel on Friday as escalating attacks in the Middle East heightened concerns over supply disruptions, while soaring tanker freight costs added to the expense of moving oil to global markets.
Brent, Nigeria’s benchmark crude oil, rose 3.37 percent, to $117 per barrel, while US-traded West Texas Intermediate (WTI) gained 3.39 percent, to $102.80 per barrel, according to market data as of 5.24 p.m. West Africa Time.
The latest gains followed reports of Houthi attacks in Saudi Arabia, which intensified concerns about the security of energy infrastructure in the world’s largest oil-exporting region. An oil spill from a tanker off the United Arab Emirates also added to market uncertainty.
Saudi Aramco, the Saudi state-owned oil giant, ordered the evacuation of its headquarters in Dhahran on Thursday as fighting intensified between Saudi Arabia and Yemen-based Houthi forces.
UAE authorities separately reported an oil spill off the coast of Umm Al Quwain, although they did not identify the vessel involved or establish the cause of the incident.
The developments have heightened concerns about the vulnerability of energy supplies and shipping routes across the Middle East, where disruptions could affect crude exports, transportation costs and the availability of petroleum products.
Brent had earlier reached $115.16 per barrel on Friday, its highest level since May 4, and was on course for a 4.4 percent weekly gain, its third consecutive weekly increase. WTI, however, was poised to end the week 0.4 percent lower.
The price rally comes as the cost of transporting crude oil has surged, adding another layer of pressure to international energy markets even when supplies are available.
Shipping about two million barrels of crude from the United States to Japan aboard a very large crude carrier is expected to cost approximately $81 million in late November, compared with an average of $9.1 million for a similar voyage last year, according to reports from international media.
The freight bill translates to about $40.50 per barrel, roughly nine times the cost recorded a year earlier.
Higher shipping charges are changing the economics of international crude trade, making some shipments less attractive to buyers and forcing refiners to reconsider where they source their feedstock.
Earlier this month, the cost of chartering a very large crude carrier to transport two million barrels of US crude from the Gulf of Mexico to China had reached about $80 million, putting pressure on the economics of supplying Asian refiners with American oil.
The combination of higher freight rates, insurance costs and geopolitical risks has also contributed to changes in established trade flows, with Asian refiners considering alternative supplies from the Middle East and Latin America.
The pressures extend beyond crude oil to refined products such as petrol, diesel, aviation fuel and fuel oil, whose international prices are also affected by transportation and insurance expenses.
In Nigeria, where petrol prices are closely linked to the cost of imported products and the pricing of locally refined fuel, sustained increases in international oil and shipping costs could add to domestic fuel-price pressures. The effect will depend on crude sourcing, refinery economics, product imports and movements in the naira.
Energy analysts say further price movements will depend on the trajectory of the conflict, the security of key shipping routes and whether elevated freight rates continue to constrain the movement of crude oil across international markets.
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Feyishola Jaiyesimi is a writer and storyteller. She currently writes for the energy desk at BusinessDay with a focus on renewable energy and environmental issues. She began her journalism career as an agricultural reporter and now covers the energy sector, including oil, gas, electricity, environment, and renewables. She has been selected for professional training by the US Consulate, Lagos. She is a 2025 Dataphyte Biodiversity Reporting Fellow. Feyishola holds a bachelor’s degree in Zoology and Environmental Biology from Ekiti State University.
