NEW YORK / RankWire.AI / – Oil prices jumped more than 4% on Friday, with Brent crude closing above $88 a barrel. Brent futures increased by $3.87, or 4.59%, to settle at $88.10. U.S. West Texas Intermediate gained $3.54, or 4.48%, ending at $82.49. Both benchmarks marked their highest closing levels since mid-June. Brent saw a weekly rise of approximately 16% and achieved a third consecutive weekly increase. WTI experienced a similar weekly uptick, extending its winning streak to two weeks.
Market activity reflected another significant drop in commercial vessel traffic through the Strait of Hormuz. This route transports a substantial portion of global oil and gas exports. On Thursday, only three commodity ships transited the waterway, the lowest daily total since May. Wednesday saw eleven vessels passing through. 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.
Furthermore, oil markets responded to disruptions at regional shipping hubs. 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 about 2 million barrels, were seen outside Hormuz after leaving the Gulf. The decline in shipping activity coincided with the largest one-day increases in crude futures for the week. Energy prices broadly rose 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 increase, levels remained significantly below the pre-conflict figure of 24 million barrels. Most of the rise was attributed to crude oil and condensate. Gulf production also grew by 3.5 million barrels per day but still lagged 11.4 million barrels behind earlier levels, indicating that production and exports had not yet returned to previous volumes.
The International Energy Agency also documented a 21 million barrel rise in global oil inventories observed in June. It marked the first monthly increase in four months. Sea-held oil increased by 117 million barrels, while onshore stocks decreased by about 96 million. Government releases contributed 44 million barrels to this decline. Gulf exports of refined products and liquefied petroleum gas remained below half of pre-conflict levels, though crude shipments recovered to nearly 75% of their earlier rate.
Weekly price rally boosts global crude benchmarks
According to the U.S. Energy Information Administration, Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices dipped below $70 on July 1 but climbed again in the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels daily during the second quarter. Additionally, June saw an average of 8.3 million barrels per day of production shut-ins, peaking at 11.2 million barrels daily in May.
Friday’s close positioned Brent at $12.09 above its July 10 settlement of $76.01. WTI finished $11.08 higher than its prior week’s close of $71.41. These increases represented 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 benchmarks settled near their session highs, concluding a week marked by substantial price rises, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.