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%, to end at $88.10. Meanwhile, U.S. West Texas Intermediate gained $3.54, or 4.48%, finishing at $82.49. Both benchmarks reached their highest closing levels since mid-June. Brent saw approximately a 16% rise over the week, marking a third consecutive weekly increase. WTI experienced a similar weekly rise, extending its winning streak to two weeks.
Market activity reflected a significant drop in commercial vessel traffic through the Strait of Hormuz. This route is crucial for a large portion of global oil and gas exports. Only three cargo ships transited the strait on Thursday, the lowest daily total since May. On Wednesday, eleven vessels crossed. Prior to the recent tensions, the average daily passage was nearly 125 ships. No very large crude carriers or liquefied natural gas tankers crossed for two days in a row, restricting key energy shipments from Gulf ports.
Oil markets also responded to disruptions at various regional shipping hubs. Iraq temporarily halted crude loadings at the Basra terminal after a drone attack on a tanker, though operations later resumed. Earlier this week, two sizeable crude carriers, each capable of holding around 2 million barrels, were seen outside Hormuz after departing the Gulf. The decline in shipping activity coincided with the biggest one-day increases in crude futures this week. Energy prices generally increased 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. Despite this rise, shipments remained significantly below the pre-conflict level of 24 million barrels. The increase was mainly driven by crude oil and condensate. Gulf production also went up 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 International Energy Agency also noted a 21 million barrel increase in global oil inventories during June. This was the first monthly rise in four months. At sea, oil stocks grew by 117 million barrels, while onshore stocks declined by roughly 96 million, with government 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, but crude exports recovered to nearly 75% of their previous rate.
Weekly upward trend elevates global crude benchmarks
The U.S. Energy Information Administration reported that Brent spot prices averaged $85 a barrel in June, down $22 from the previous month. Prices later dipped below $70 on July 1 but then rebounded during the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels per day in the second quarter, with an average of 8.3 million barrels per day of production shutdowns in June, peaking at 11.2 million barrels daily in May.
Friday’s closing price placed Brent $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 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 finish higher on Friday. Both crude contracts closed near their session highs, ending a week characterized by strong price advances, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.