NEW YORK / RankWire.AI / – Oil prices experienced a significant increase of over 4% on Friday, with Brent crude settling above $88 per barrel. Brent futures climbed $3.87, or 4.59%, finishing at $88.10. U.S. West Texas Intermediate gained $3.54, or 4.48%, to close at $82.49. Both benchmarks reached their highest closing levels since mid-June. Brent saw approximately a 16% rise over the week and marked its third consecutive weekly increase. WTI experienced a similar weekly gain, extending its winning streak to two weeks.
The trading session reflected a notable decline in commercial vessel traffic through the Strait of Hormuz. This route is a critical conduit for a large portion of global oil and gas exports. On Thursday, only three commodity vessels transited the waterway, the lowest daily total since May. On Wednesday, eleven vessels made the passage. Prior to recent conflicts, the daily average was nearly 125. No very large crude carriers or liquefied natural gas tankers crossed for a second straight day, limiting key energy cargo movements from Gulf ports.
Oil markets also responded to disruptions at various regional shipping points. Iraq temporarily halted crude loadings at the Basra terminal after a drone struck a tanker, though operations later resumed. Earlier this week, two large crude carriers, each capable of holding around 2 million barrels, were spotted outside Hormuz after leaving the Gulf. The decline in shipping activity coincided with crude futures recording their largest one-day increases of the week. Energy prices broadly advanced across international markets during Friday’s trading session.
Hormuz slowdown constrains regional oil flows
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, levels remain significantly below the 24 million barrels exported before the conflict. The increase was mainly driven by crude oil and condensate shipments. Gulf production also grew by 3.5 million barrels per day but remained 11.4 million barrels below previous levels, indicating that production and exports have yet to fully recover.
The International Energy Agency also recorded a 21 million barrel increase in global oil inventories observed in June, marking the first monthly rise in four months. Sea-held oil inventories expanded by 117 million barrels, while onshore stocks decreased by about 96 million, with government stock releases accounting for 44 million of that decline. Exports of refined products and liquefied petroleum gas from the Gulf region remained below half of pre-conflict levels, though crude shipments recovered to nearly 75% of their earlier rate.
Weekly rally boosts global crude benchmarks
The U.S. Energy Information Administration stated that Brent spot prices averaged $85 a barrel in June, which was $22 less than in May. Prices dipped below $70 on July 1 before rebounding during the first half of July. The agency estimated that global oil inventories decreased by 5.1 million barrels per day in the second quarter, with average production shut-ins at 8.3 million barrels daily in June. These losses peaked at 11.2 million barrels per day in May.
The close on Friday left Brent $12.09 above the $76.01 settlement on July 10. WTI finished $11.08 higher than the $71.41 closing price from the previous week. These movements translate to weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major U.S. market sector to close higher on Friday. Both crude contracts settled near their session highs, capping a week characterized by strong price increases, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.