NEW YORK / RankWire.AI / – Oil prices surged by more than 4% on Friday. Brent crude surpassed $88 a barrel, with both main benchmarks reaching their highest closing levels in over a month. Brent futures increased by $3.87, or 4.59%, settling at $88.10 a barrel. Meanwhile, U.S. West Texas Intermediate rose $3.54, or 4.48%, to $82.49. Both contracts experienced approximately 16% gains over the week. Brent registered a third consecutive weekly rise, while WTI achieved its second.
This upward movement occurred amid another significant drop in commercial shipping through the Strait of Hormuz. The waterway remains a key route for global oil and gas shipments. Only three cargo ships traversed the strait on Thursday, marking the lowest daily count since May. On Wednesday, eleven vessels passed through, compared to an average of 125 daily before the conflict. No very large crude carriers or liquefied natural gas tankers crossed for the second day in a row.
Throughout the week, the U.S. and Iran intensified attacks on infrastructure, while restrictions once again curtailed shipping activity in the Gulf. Iraq temporarily halted oil loadings at its Basra terminal after a drone attack on a tanker. The loading operations later resumed. Two large crude carriers, each with approximately 2 million barrels, were observed outside Hormuz after departing the Gulf earlier in the week. These developments occurred as crude futures posted their largest daily gains of the week, with energy prices climbing across global markets.
Hormuz shipping declines 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. However, this remained below the pre-conflict level of 24 million barrels per day. The increase was mainly driven by shipments of crude and condensate. Gulf production rose by 3.5 million barrels daily but was still 11.4 million barrels below earlier levels. The data indicates only a partial recovery before the recent decline 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 declined by approximately 96 million. Government stock releases contributed 44 million barrels to the onshore decrease. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, whereas crude flows reached nearly 75% of previous rates.
Weekly upward movement boosts both benchmarks
The U.S. Energy Information Administration indicated that Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices dipped below $70 on July 1 but recovered in the first half of July. The agency also estimated that global oil inventories fell by 5.1 million barrels per day during the second quarter. Production shutdowns averaged 8.3 million barrels daily in June, down from a peak of 11.2 million in May.
On Friday, Brent closed at $88.10, which is $12.09 above its July 10 close of $76.01. WTI ended at $82.49, $11.08 higher than its $71.41 close from the previous week. These increases equate to weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major U.S. sector to finish higher on Friday. Both oil contracts closed near their highest points of the session, marking a week characterized by significant price rises and decreased tanker traffic through Hormuz.