NEW YORK / RankWire.AI / – Oil prices surged by more than 4% on Friday. Brent crude crossed the $88 per barrel threshold, with both major benchmarks reaching their highest settlement in over a month. Brent futures increased by $3.87, or 4.59%, to close at $88.10 per barrel. U.S. West Texas Intermediate (WTI) gained $3.54, or 4.48%, ending at $82.49. Both contracts saw approximately a 16% increase over the week. Brent marked its third consecutive weekly rise, while WTI posted its second.
The upward movement coincided with another significant drop in commercial shipping traffic through the Strait of Hormuz. This vital waterway remains a key corridor for global oil and gas shipments. On Thursday, only three cargo vessels traversed the strait, the lowest daily count since May. On Wednesday, eleven vessels passed through, compared to an average of 125 ships before the conflict erupted. No very large crude carriers or liquefied natural gas tankers crossed for a second consecutive day.
Throughout the week, the United States and Iran intensified their attacks on infrastructure, while sanctions again curtailed Gulf shipping activity. Iraq momentarily stopped oil loadings at its Basra terminal after a drone targeted a tanker. Loadings resumed later. Two large crude carriers, each roughly holding 2 million barrels, appeared outside Hormuz after departing the Gulf earlier in the week. These developments occurred as crude futures posted their largest single-day gains of the week, fueling higher energy prices across global markets.
Reduced Hormuz traffic accompanies crude price rally
The International Energy Agency reported that Gulf oil exports increased by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Despite this rise, exports remained below the pre-conflict level of 24 million barrels per day. The increase was primarily driven by shipments of crude and condensate. Gulf production grew by 3.5 million barrels daily but still lagged 11.4 million barrels behind earlier levels. These figures indicated only a partial recovery before vessel traffic declined again.
The IEA also noted that global oil inventories grew by 21 million barrels in June, marking their first monthly increase in four months. Waterborne oil stocks rose by 117 million barrels, while onshore reserves decreased by approximately 96 million barrels. Government releases contributed 44 million barrels to the onshore decline. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, whereas crude exports reached nearly three-quarters of previous rates.
Weekly increases propel both benchmarks
The U.S. Energy Information Administration reported that Brent spot prices averaged $85 a barrel in June, a decrease of $22 from May. Prices briefly dipped below $70 on July 1 before rebounding during the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels per day during the second quarter. It also projected that production shutdowns averaged 8.3 million barrels daily in June, after peaking at 11.2 million in May.
Friday’s settlement placed Brent at $12.09 above its July 10 close of $76.01. WTI finished $11.08 higher than its $71.41 close from the previous week. These movements translated into weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major sector in the U.S. stock market to close higher on Friday. Both oil contracts finished near their session highs, ending a week characterized by sharp price increases and diminished tanker traffic through Hormuz.