Brent crude reached its highest level since May on Friday, putting international energy costs back in focus for motorists and businesses.

Oil prices climbed sharply on Friday, with Brent briefly touching $110 a barrel before settling at $109.86. The international benchmark gained 3.7% for the session as concerns about Middle Eastern supplies and Russian refinery disruptions unsettled markets, Reuters reported.

Why is oil climbing?

Traders are pricing in the risk that conflict could interrupt production, refining or transport routes. Reuters reported that a missile targeting Saudi Arabia’s port city of Yanbu was intercepted, with initial reports indicating no infrastructure damage. A drone attack also disrupted a processing unit at Russia’s Ryazan refinery.

US benchmark West Texas Intermediate closed at $101.41 a barrel, gaining 3.5% on Friday and more than 10% over the week, according to The Wall Street Journal.

What does $110 oil mean for South African fuel prices?

Higher oil prices can add pressure to petrol and diesel costs, but a rise in Brent does not translate directly into an equivalent increase at the pump.

South Africa’s pricing formula uses international prices for refined fuels, such as petrol and diesel, together with the rand-dollar exchange rate and import-related costs. Domestic levies, transport costs and margins also contribute to the final price, as explained by the Department of Mineral and Petroleum Resources.

A stronger rand can soften international price increases. A weaker rand can amplify them.

Does this guarantee another fuel increase?

No. Monthly adjustments depend on prices and exchange rates across the review period, rather than a single day’s oil quote.

For businesses, the concern extends beyond filling a vehicle. If higher international fuel costs persist, delivery operators, transport companies and diesel-dependent businesses could face additional pressure on their operating budgets.

The key indicators to watch are refined petrol and diesel prices, the rand and the official fuel-price announcement. Brent nearing $110 is a warning signal, rather than a confirmed November pump-price increase.

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