NEW YORK / RankWire.AI / – On Friday, crude oil prices jumped over 4% as Brent crude closed above $88 per barrel. Brent futures increased by $3.87, or 4.59%, finishing at $88.10. U.S. West Texas Intermediate (WTI) gained $3.54, or 4.48%, to close at $82.49. Both benchmarks hit their highest closing points since mid-June. Brent gained approximately 16% over the week and marked a third consecutive weekly rise. WTI experienced a similar weekly increase, extending its winning streak to two weeks.
Trading activity reflected a sharp drop in commercial vessel movements through the Strait of Hormuz, a key route for global oil and gas shipments. Only three commodity ships transited the strait on Thursday, the lowest daily total since May. On Wednesday, eleven vessels passed through. Prior to the recent conflicts, the daily average was nearly 125. No very large crude carriers or liquefied natural gas tankers crossed for the second day in a row, restricting essential energy cargo movements from Gulf ports.
The oil market also responded to disruptions at various regional shipping points. Iraq temporarily halted crude exports at the Basra terminal after a drone attack on a tanker. Operations at the terminal later resumed. Two large crude carriers, each capable of transporting about 2 million barrels, were observed outside Hormuz after departing the Gulf earlier this week. The decline in shipping activity coincided with the biggest one-day increases in crude futures this week. International energy markets experienced a broad rise in prices during Friday’s trading session.
Hormuz slowdown constrains regional oil flows
The International Energy Agency reported that Gulf oil exports rose by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Despite this increase, exports remain significantly below the pre-conflict level of 24 million barrels per day. Most of the rise came from crude oil and condensate. Gulf production increased by 3.5 million barrels daily but remained 11.4 million barrels lower than earlier levels, indicating that production and export volumes have yet to fully recover.
The International Energy Agency also noted a 21 million barrel rise in global oil inventories observed in June, marking the first monthly increase in four months. Sea-held inventories increased by 117 million barrels, while onshore stocks decreased by approximately 96 million, with government stock releases accounting for 44 million of that decline. Exports of refined products and liquefied petroleum gas from the Gulf remain below half of pre-conflict levels. Crude shipments, however, have recovered to nearly 75% of their previous pace.
Weekly gains bolster global crude benchmarks
The U.S. Energy Information Administration stated that Brent crude averaged $85 per barrel in June, down $22 from May. Prices fell below $70 on July 1 before rebounding during the first half of July. The agency estimates that global oil inventories shrank by 5.1 million barrels per day in the second quarter, with June’s average production shut-ins at 8.3 million barrels daily, peaking at 11.2 million barrels per day in May.
Friday’s close saw Brent trading at $12.09 above its July 10 settlement of $76.01. WTI ended $11.08 higher than its previous week’s close of $71.41. These increases represent weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Among major U.S. stock sectors, energy shares were the only ones to close higher on Friday. Both crude contracts settled near their session highs, concluding a week characterized by strong price hikes, decreased tanker traffic, and ongoing restrictions on Gulf energy exports.