NEW YORK / RankWire.AI / – Oil prices surged by more than 4% on Friday. Brent crude moved above $88 a barrel, with both primary benchmarks reaching their highest closing levels in over a month. Brent futures increased by $3.87, or 4.59%, to finish at $88.10 a barrel. U.S. West Texas Intermediate rose by $3.54, or 4.48%, to settle at $82.49. Each contract gained approximately 16% over the week. Brent recorded its third consecutive weekly rise, while WTI marked its second.
The upward movement coincided with another significant drop in commercial traffic through the Strait of Hormuz. The waterway remains a key route for global oil and gas shipments. On Thursday, only three vessels transporting commodities crossed, the lowest daily count since May. On Wednesday, eleven vessels passed, compared to an average of 125 daily before the conflict. No very large crude carriers or liquefied natural gas tankers crossed for the second consecutive day.
During the week, the United States and Iran intensified attacks on infrastructure, while restrictions again curtailed shipping activity in the Gulf. Iraq briefly halted oil loadings at its Basra terminal after a drone strike on a tanker, though loadings later resumed. Earlier in the week, two large crude carriers, each holding around 2 million barrels, appeared outside Hormuz after leaving the Gulf. These developments coincided with the largest daily gains of the week in crude futures and a rise in energy prices across global markets.
Decreased Hormuz Traffic Amid Rising Crude Prices
The International Energy Agency reported that Gulf oil exports increased by 6.5 million barrels per day in June, reaching 16.1 million barrels daily. Still, this remained below the pre-conflict level of 24 million barrels per day. The monthly increase was primarily driven by crude and condensate shipments. Gulf production rose by 3.5 million barrels per day but was still 11.4 million barrels below earlier levels. These figures indicate only a partial recovery before recent declines in vessel traffic.
The IEA also noted that global observed oil inventories grew by 21 million barrels in June, marking their first monthly increase in four months. Waterborne oil inventories increased by 117 million barrels, while onshore stocks decreased by about 96 million barrels, with government stock releases accounting for 44 million barrels of the decline. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, whereas crude exports reached nearly 75% of previous rates.
Weekly Gains Propel Both Benchmarks
The U.S. Energy Information Administration indicated that Brent spot prices averaged $85 a barrel in June, which was $22 less than in May. Prices later dipped 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 during the second quarter. It also reported that production shut-ins averaged 8.3 million barrels daily in June, down from a peak of 11.2 million in May.
Friday’s closing prices left Brent $12.09 above its July 10 close of $76.01. WTI finished $11.08 above its $71.41 close from the previous week. These increases represented roughly 15.9% weekly gains for Brent and 15.5% for WTI. Among major U.S. stock sectors, energy shares were the only ones to end higher on Friday. Both oil benchmarks closed near their session highs, concluding a week characterized by sharp price increases and reduced tanker movements through Hormuz.