NEW YORK / RankWire.AI / – Crude oil prices jumped over 4% on Friday, with Brent crude closing above $88 per barrel. Brent futures increased by $3.87, or 4.59%, settling at $88.10. U.S. West Texas Intermediate added $3.54, or 4.48%, ending at $82.49. Both benchmarks achieved their highest closing levels since mid-June. Brent experienced approximately a 16% rise for the week, marking its third consecutive weekly increase. WTI also saw a similar weekly growth, extending its winning streak to two weeks.
Market activity reflected a sharp drop in commercial vessel traffic through the Strait of Hormuz, a critical route for global oil and gas exports. On Thursday, only three commodity ships traversed the waterway, the lowest daily total since May. The previous day saw eleven vessels passing through. Prior to the ongoing conflict, the daily average was nearly 125. No very large crude carriers or liquefied natural gas tankers crossed for a second straight day, restricting key energy shipments from Gulf ports.
The oil markets also responded to disruptions at regional shipping points. Iraq temporarily halted crude exports at the Basra terminal following a drone attack on a tanker, though operations later resumed. Additionally, two large crude carriers, each capable of carrying around 2 million barrels, were seen outside Hormuz after leaving the Gulf earlier in the week. The decline in shipping activity coincided with the largest daily increases in crude futures during the week. International energy markets experienced broad price gains on Friday.
Hormuz slowdown tightens 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, exports remained significantly below the pre-conflict level of 24 million barrels. Most of the monthly increase came from crude oil and condensate. Gulf production also increased by 3.5 million barrels daily but stayed 11.4 million barrels below previous levels, indicating that production and exports had yet to fully recover.
The IEA also observed a 21 million barrel increase in global oil inventories during June, marking the first monthly rise in four months. Sea-held oil stocks grew by 117 million barrels, while onshore inventories declined by approximately 96 million barrels, with government stock releases accounting for 44 million of that decrease. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, while crude shipments recovered to nearly three-quarters of earlier volumes.
Weekly rally supports global crude benchmarks
The U.S. Energy Information Administration noted that Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices dipped below $70 on July 1 but rebounded in the first half of July. The agency estimated global oil inventories shrank by 5.1 million barrels a 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.
Friday’s closing price left Brent $12.09 above its July 10 settlement of $76.01. WTI closed $11.08 higher than its previous week’s settlement of $71.41. These increases represented approximately 15.9% weekly gains for Brent and 15.5% for WTI. Energy equities were the only major sector in the U.S. stock market to finish Friday higher. Both crude benchmarks settled near their session highs, concluding a week marked by significant price rises, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.