Oil prices surged again on Thursday (September 10), with Brent crude briefly moving above $108 a barrel as fears over global supply grew.
Brent ended the session at $107.63 a barrel, up 6.3% for the day. U.S. West Texas Intermediate (WTI) crude closed at $102.48, gaining 6.7%.
Both prices reached their highest closing levels since May. Since the start of 2026, Brent and WTI have risen by more than 75%.
The latest jump came as tensions around the Iran conflict continued to weigh on the oil market. Analysts at ING said the market was still pricing in persistent geopolitical risk, with tensions in the Persian Gulf showing no clear path to ease.
How Oil Supply Risks Keep Growing?
President Donald Trump added to those concerns after saying he was not looking for a deal with Iran.
Trump also said he did not expect oil prices to fall until after the November midterm elections. He said prices would fall sharply after the election if the conflict ends.
Those comments have added to concerns that the disruption could last for several more months.
Commodities experts have warned that Brent could rise to $120 or even $150 a barrel if the stalemate with Iran continues.
At the same time, the global oil market has less room to absorb another major supply shock.
Emergency Oil Stocks Are Falling
Earlier this year, 32 members of the International Energy Agency agreed to make 400 million barrels from emergency reserves available to the market after the Middle East conflict disrupted oil supplies.
The United States also committed to release 172 million barrels from its Strategic Petroleum Reserve as part of that response.
However, U.S. emergency stocks have continued to fall. The Strategic Petroleum Reserve recently dropped to about 285.4 million barrels, its lowest level since 1982.
That leaves governments with a smaller emergency buffer if supply disruptions continue or become worse.
Oil production has also come under pressure. Reuters reported that output from 11 OPEC members fell by 640,000 barrels a day in August, mainly because of disruptions to Saudi exports and blocked Iranian shipments.
How Higher Oil Costs Add Pressure?
The impact is already visible in fuel markets.
In the U.S., the average petrol price rose by five cents overnight to $4.27 a gallon. Diesel increased by four cents to $5.98.
For import-dependent economies, prolonged high crude prices can also raise the cost of fuel imports and put pressure on businesses, transport costs and foreign exchange.
That risk is particularly relevant locally. Fuel import expenditure reached US$3.62 billion during January–July 2026, up 59.9% from the same period last year. July fuel imports alone cost US$453 million, 68% more than a year earlier.
The latest oil surge therefore adds another cost risk for an economy already facing a much higher fuel import bill.
For now, the market is watching the conflict, oil flows and emergency stock levels closely. The longer the disruption lasts, the harder it becomes to treat the current price surge as a short-term shock.
Prices in Sri Lanka
In the local market, CPC currently prices Petrol 92 at Rs.399 a litre and Auto Diesel at Rs.382, while Petrol 95 is Rs.475 and Super Diesel is Rs.478.
These prices have remained unchanged since the latest August revision, when Petrol 92 fell to Rs.399 from Rs.414 and Petrol 95 to Rs.475 from Rs.495.
With global crude now above $100 a barrel, the next fuel-price review will be closely watched by consumers and businesses already facing higher energy and transport costs.
Last modified: September 11, 2026
