NEW YORK / RankWire.AI / – Crude oil prices jumped more than 4% on Friday, with Brent crude closing above $88 per barrel. Brent futures increased by $3.87, or 4.59%, ending at $88.10. U.S. West Texas Intermediate (WTI) gained $3.54, or 4.48%, to settle at $82.49. Both benchmarks hit their highest closing levels since mid-June. Brent gained approximately 16% over the week, marking its third consecutive weekly increase. WTI experienced a similar weekly rise, extending its winning streak to two weeks.
Market activity also reflected a significant drop in commercial vessel traffic through the Strait of Hormuz, a key route for global oil and gas exports. Only three cargo ships crossed the waterway on Thursday, the lowest daily total since May. On Wednesday, eleven vessels transited the strait. Prior to the recent conflicts, the daily average was around 125. No very large crude carriers or liquefied natural gas tankers crossed for the second straight day, restricting movement of vital energy shipments from Gulf ports.
Crude markets also responded to disruptions at various regional shipping hubs. Iraq briefly halted crude loadings at the Basra terminal after a drone attack on 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. This renewed decline in shipping activity coincided with crude futures experiencing their largest single-day increases of the week. Energy prices generally rose across global 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. However, this remains significantly below the pre-conflict level of 24 million barrels. The monthly rise was mainly driven by crude oil and condensate. Gulf production also increased by 3.5 million barrels a day but stayed 11.4 million barrels below previous levels, indicating that both production and exports had yet to fully recover.
The IEA further noted a 21 million barrel rise in global oil inventories in June, marking the first monthly increase in four months. Sea-held oil inventories grew 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 remained below half of pre-conflict levels, with crude shipments recovering to nearly 75% of their earlier rate.
Weekly surge boosts worldwide crude benchmarks
According to the U.S. Energy Information Administration, Brent spot prices averaged $85 a barrel in June, down from $107 in May. Prices dipped below $70 on July 1 but then rebounded during the first half of July. The agency estimated that global oil inventories declined by 5.1 million barrels a day in the second quarter, with June’s average production shut-ins at 8.3 million barrels per day. At its peak in May, production losses reached 11.2 million barrels daily.
Friday’s close saw Brent trading $12.09 above its July 10 settlement of $76.01. WTI ended $11.08 higher than its previous week’s closing of $71.41. These movements translated to weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks in the U.S. were the only major sector to close higher on Friday. Both crude contracts settled near their session highs, concluding a week characterized by notable price increases, reduced tanker traffic, and continued restrictions on Gulf energy exports.