NEW YORK / RankWire.AI / – On Friday, oil prices surged by more than 4%. Brent crude moved above $88 a barrel, with both major benchmarks reaching their highest closing levels in over a month. Brent futures increased by $3.87, or 4.59%, to settle at $88.10 a barrel. U.S. West Texas Intermediate (WTI) rose by $3.54, or 4.48%, to close at $82.49. Both contracts experienced approximately 16% gains over the week. Brent posted its third consecutive weekly rise, while WTI recorded its second.
The upward movement occurred amid another significant drop in commercial shipping through the Strait of Hormuz. The waterway continues to serve as a key corridor for global oil and gas transportation. On Thursday, only three commodity vessels traversed the strait, marking the lowest daily count since May. On Wednesday, eleven vessels passed through, compared to an average of 125 per day prior to the conflict. No very large crude carriers or liquefied natural gas tankers crossed for the second consecutive day.
Throughout the week, the U.S. and Iran intensified their attacks on infrastructure, while restrictions again curtailed Gulf shipping activity. Iraq temporarily halted oil loadings at its Basra terminal after a drone attack on a tanker, though loadings later resumed. Two large crude carriers, each carrying approximately 2 million barrels, appeared outside Hormuz after departing the Gulf earlier this week. These events coincided with the largest daily gains of the week for crude futures and a rise in energy prices across international markets.
Reduced Hormuz Traffic as Crude Prices Climb
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, exports remained below the pre-conflict level of 24 million barrels per day. The growth was mainly driven by crude and condensate shipments. Gulf production rose by 3.5 million barrels daily but was still 11.4 million barrels below earlier levels. These figures indicate only a partial recovery before the recent decline in vessel traffic.
The IEA also noted that global oil inventories expanded by 21 million barrels in June, marking their first monthly rise in four months. Oil stored on water increased by 117 million barrels, while onshore stocks decreased by about 96 million. Government stock releases contributed 44 million barrels to the onshore decline. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, whereas crude flows approached nearly 75% of previous rates.
Weekly Gains Drive Both Benchmarks Higher
The U.S. Energy Information Administration stated that Brent spot prices averaged $85 a barrel in June, which is $22 less than in May. Prices fell below $70 on July 1 but recovered during the first half of July. The agency estimated that global oil inventories declined by 5.1 million barrels per day in the second quarter. It also projected that production shut-ins averaged 8.3 million barrels daily in June, down from a peak of 11.2 million in May.
Friday’s settlement left Brent $12.09 above its July 10 close of $76.01. WTI closed $11.08 higher than its $71.41 close from one week earlier. These movements translated to weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major sector in the U.S. stock market to finish the week higher. Both oil contracts ended near their daily session highs, concluding a week characterized by significant price increases and diminished tanker traffic through Hormuz.