NEW YORK / RankWire.AI / – Oil prices surged by more than 4% on Friday. Brent crude exceeded $88 per barrel, with both major 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 climbed $3.54, or 4.48%, to $82.49. Both contracts experienced approximately a 16% rise over the week. Brent marked its third consecutive weekly increase, while WTI recorded its second.
The upward movement occurred amid another significant drop in commercial shipping through the Strait of Hormuz. This vital waterway continues to serve as a key route for international oil and gas shipments. Only three cargo vessels crossed on Thursday, the lowest daily count since May. On Wednesday, eleven vessels traversed the strait, compared to an average of 125 prior to the conflict. For the second consecutive day, no very large crude carriers or liquefied natural gas tankers passed through.
During the week, the United States and Iran intensified attacks on infrastructure, while restrictions again curtailed shipping activities in the Gulf. Iraq temporarily halted oil loadings at its Basra terminal following a drone strike on a tanker. Loadings later resumed. Earlier this week, two large crude carriers, each roughly holding 2 million barrels, appeared outside Hormuz after departing the Gulf. These events coincided with the biggest daily gains for crude futures this week and a rise in energy prices across global markets.
Reduced Hormuz Traffic as Oil Prices Rise
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 24 million barrels per day level recorded before the conflict. Most of the monthly growth came from crude and condensate shipments. Gulf production increased by 3.5 million barrels daily but was still 11.4 million barrels below earlier levels. These figures indicate only 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 increase in four months. Waterborne oil inventories rose by 117 million barrels, while onshore stocks decreased by roughly 96 million. 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 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, down $22 from May. Prices briefly fell below $70 on July 1 but recovered 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 shut-ins averaged 8.3 million barrels daily in June, after peaking at 11.2 million in May.
At Friday’s close, Brent was $12.09 above its July 10 level of $76.01. WTI finished $11.08 higher than its previous close of $71.41 from the week before. These movements represented weekly increases of roughly 15.9% for Brent and 15.5% for WTI. Energy shares were the only major sector in the U.S. stock market to close higher on Friday. Both oil contracts ended near their highest points of the session, concluding a week characterized by significant price gains and reduced tanker activity through Hormuz.