Brent Near $112 as Middle East Escalation Lifts Oil and European Gas

· Oil & Gas · United Kingdom · United States

Oil and European natural gas prices climbed as heightened Middle East tensions renewed supply worries. Brent December futures traded at $111.70 on Thursday, up $2.88, or 2.65%, after touching $112.68, while Europe's benchmark gas price rose to nearly 90 euros per megawatt-hour, equivalent to $29.50 per million British thermal units, with winter supply concerns compounded by historically low inventories at the start of the heating season. The moves mark a sharp reversal for Citi, which as recently as three months ago had forecast Brent at $60-65 by year-end but now sees more upside risk, even as Middle Eastern crude exports recover. The bank's reassessment underscores how quickly the market's mood has shifted toward supply risk.

Why it matters：The renewed price surge shows how quickly geopolitical risk can override bearish supply-and-demand forecasts, affecting refiners, shippers and gas-dependent European utilities as winter approaches.

Key points

  • Brent touched $112.68 intraday before settling at $111.70, up 2.65%.
  • European benchmark gas hit about 90 euros/MWh, or $29.50/MMBtu.
  • Citi reversed its three-month-old call for $60-65 Brent by year-end.

Sources (original reporting)

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