NEW YORK / RankWire.AI / – Crude oil prices jumped over 4% on Friday as Brent crude closed above $88 a barrel. Brent futures increased by $3.87, or 4.59%, settling at $88.10. U.S. West Texas Intermediate gained $3.54, or 4.48%, ending at $82.49. Both benchmarks reached their highest close since mid-June. Brent gained approximately 16% for the week and marked a third consecutive weekly rise. WTI experienced a similar weekly increase, extending its upward streak to two weeks.
Market activity also reflected a significant drop in commercial vessel traffic through the Strait of Hormuz. This route is a key conduit for a large portion of global oil and gas exports. On Thursday, only three cargo ships crossed the waterway, the lowest daily total since May. The previous day saw eleven vessels pass through. Before the recent conflicts, the daily average was around 125 vessels. No very large crude carriers or liquefied natural gas tankers crossed for the second straight day, limiting vital energy shipments from Gulf ports.
Oil markets also responded to disruptions at several regional shipping hubs. Iraq temporarily halted crude exports at the Basra terminal following a drone attack on a tanker, though operations later resumed. Earlier this week, two large crude carriers, each capable of carrying about 2 million barrels, were observed outside Hormuz after departing the Gulf. The decline in shipping activity coincided with crude futures experiencing their largest single-day increases of the week. Energy prices broadly increased across global markets during Friday’s trading session.
Hormuz slowdown restricts 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 majority of the monthly increase came from crude oil and condensate. Gulf production also rose by 3.5 million barrels per day but stayed 11.4 million barrels below earlier levels, indicating that both production and exports have not yet returned to previous volumes.
The International Energy Agency also noted a 21 million barrel increase in global oil inventories during June. This marked the first monthly rise in four months. Sea-held inventories grew by 117 million barrels, while onshore stocks declined by about 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, while crude shipments recovered to nearly 75% of their previous pace.
Weekly rally boosts global crude benchmarks
The U.S. Energy Information Administration reported that Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices dipped below $70 on July 1 but then rebounded in the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels per day in the second quarter. It also noted that production shutdowns averaged 8.3 million barrels daily in June, peaking at 11.2 million barrels a day in May.
Friday’s close pushed Brent $12.09 above its July 10 settlement of $76.01. WTI finished $11.08 higher than its previous week’s close of $71.41. These movements 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 close higher on Friday. Both crude contracts ended near their session highs, concluding a week characterized by notable price increases, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.