NEW YORK / RankWire.AI / – Oil prices experienced a rise of more than 4% on Friday. Brent crude surpassed the $88 per barrel mark, with both main benchmarks reaching their highest closing levels in over a month. Brent futures increased by $3.87, or 4.59%, settling at $88.10 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) gained $3.54, or 4.48%, to close at $82.49. Both contracts saw approximately a 16% rise over the week. Brent recorded its third consecutive weekly increase, while WTI posted its second.
The surge coincided with another significant drop in commercial shipping through the Strait of Hormuz. This vital waterway continues to serve as a key corridor for global oil and gas shipments. On Thursday, only three vessels transited, the lowest daily count since May. On Wednesday, eleven ships moved through, compared to an average of 125 daily before the conflict escalated. No very large crude carriers or liquefied natural gas tankers crossed for the second consecutive day.
Tensions between the United States and Iran intensified this week, with both sides increasing attacks on infrastructure, while restrictions once again curtailed Gulf shipping activity. Iraq temporarily suspended oil loadings at its Basra terminal following a drone strike on a tanker, though operations later resumed. Additionally, two large crude carriers, each holding approximately 2 million barrels, were observed outside Hormuz after departing the Gulf earlier in the week. These events transpired as crude futures recorded their most substantial daily gains of the week, with energy prices climbing across global markets.
Hormuz traffic declines as crude prices rise
The U.S. Energy Information Administration reported that Gulf oil exports increased by 6.5 million barrels per day in June. Total exports reached 16.1 million barrels daily, still below the pre-conflict level of 24 million barrels per day. The majority of the monthly increase was driven by crude and condensate shipments. Gulf production rose by 3.5 million barrels per day but remained 11.4 million barrels below earlier levels. These figures indicate a partial recovery prior to the recent decline in vessel traffic.
The IEA also noted that global observed oil inventories grew by 21 million barrels in June, marking their first monthly rise in four months. Waterborne oil inventories increased by 117 million barrels, while onshore stocks declined by around 96 million, with government stock releases accounting for 44 million barrels of the onshore decrease. Exports of refined products and liquefied petroleum gas from the Gulf stayed below 50% of pre-conflict levels, whereas crude oil flows reached nearly 75% of previous rates.
Weekly gains push both benchmarks higher
The U.S. Energy Information Administration indicated that Brent spot prices averaged $85 a barrel in June, a decline of $22 from May. Prices briefly dipped below $70 on July 1 but recovered during the first half of July. The agency projected that global oil inventories decreased by 5.1 million barrels per day in the second quarter. It also estimated that production shut-ins averaged 8.3 million barrels daily in June, down from a peak of 11.2 million in May.
Friday’s close placed Brent at $12.09 above its July 10 level of $76.01. WTI finished $11.08 higher than its previous week’s close of $71.41. These increases correspond to weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy shares were the only major U.S. stock sector to close higher on Friday. Both oil benchmarks finished near their session highs, concluding a week characterized by significant price increases and reduced tanker activity through Hormuz.