Brent ends at $104.72 as Hurricane Isaias shuts 71% of Gulf oil; diesel falls 3%

Oil and fuel markets were pulled in two directions on Friday, October 9, 2026. Brent crude futures settled at $104.72 a barrel, up 44 cents or 0.42%, while US crude (WTI) finished near $91.85, as Hurricane Isaias forced producers to shut in about 71.5% of daily oil output in the US Gulf ahead of landfall. US diesel futures, by contrast, fell by about 3%, after President Donald Trump said Russia would supply more than 300,000 tons of diesel to the US and global markets. Isaias, the first hurricane of the 2026 Atlantic season, made landfall near Destin, Florida, at about 8 pm US Eastern time on Friday as a Category 2 storm, and later weakened.

Two separate supply stories hit energy markets on the same day. The hurricane removed a large slice of US offshore oil output, which supported crude prices. But storm shutdowns are precautionary and can be reversed once platforms are checked after the storm passes, which may help explain why Brent rose only modestly despite more than two-thirds of Gulf output going offline.

Diesel moved the other way because the Russian supply plan targets refined fuel directly. Traders sold diesel futures on the prospect of extra cargoes, even though analysts noted that the first 300,000 tons is small relative to US demand and does nothing to fix shipping problems in the Gulf region, where the war involving Iran has disrupted supply. The gap between a firm crude price and a weaker diesel price squeezes refiners' margins in the short term.

For Indian markets, the key number is Brent. At around $105 a barrel, crude remains a heavy burden for India, which imports most of its oil. High prices feed into fuel costs, inflation and the trade deficit, and they have added to pressure on the rupee. The Reserve Bank of India has responded this week by opening a special dollar window for state-run oil companies from October 12. Any sustained fall in global fuel prices, whether from more Russian supply or a quick recovery in Gulf output, would ease that pressure.

Short-term: Traders will watch how quickly Gulf platforms restart after Isaias and whether Russian diesel cargoes actually arrive, both of which could push fuel prices lower.

Long-term: With Brent above $100, energy prices remain a key risk for inflation and currencies in oil-importing countries, including India, until supply routes in the Gulf region normalise.

Who is affected: Oil producers and refiners, fuel importers, airlines and transport companies, the Indian rupee and Indian oil marketing companies, and consumers facing fuel costs.

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