NEW YORK / RankWire.AI / – Oil costs increased by more than 4% on Friday. Brent crude exceeded $88 a barrel, with both main benchmarks reaching their highest closing levels in over a month. Brent futures rose by $3.87, or 4.59%, to settle at $88.10 per barrel. U.S. West Texas Intermediate also increased by $3.54, or 4.48%, reaching $82.49. Both futures contracts saw approximately a 16% rise for the week. Brent experienced a third straight weekly gain, while WTI recorded its second.
The surge occurred amid a significant drop in commercial vessel traffic through the Strait of Hormuz. The strait remains a vital route for global oil and gas shipments. Only three commodity ships transited on Thursday, marking the lowest daily count since May. On Wednesday, eleven ships passed through, compared to an average of 125 per day 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 expanded attacks on infrastructure, while restrictions again limited Gulf shipping activity. Iraq temporarily stopped oil loadings at its Basra terminal after a drone strike on a tanker. The loadings later resumed. Earlier this week, two large crude carriers, each holding approximately 2 million barrels, appeared outside Hormuz after departing the Gulf. These events coincided with crude futures recording their largest daily gains of the week and a rise in energy prices across global markets.
Hormuz traffic declines as crude prices climb
The International Energy Agency reported that Gulf oil exports increased by 6.5 million barrels per day in June. Total exports reached 16.1 million barrels daily, still below the 24 million barrels per day seen before the conflict. The majority of the monthly growth was driven by crude and condensate shipments. Gulf production rose by 3.5 million barrels per day but remained 11.4 million barrels below earlier levels. These figures indicate only a partial recovery prior to the recent decline in vessel traffic.
The IEA also noted that global oil inventories grew by 21 million barrels in June, marking their first monthly increase in four months. Oil stored on water increased by 117 million barrels, whereas onshore stocks decreased by approximately 96 million. Government releases contributed 44 million barrels to the onshore decline. Exports of refined products and liquefied petroleum gas from the Gulf stayed below half of pre-conflict levels, while crude shipments reached nearly three-quarters of previous rates.
Weekly increases push both benchmarks higher
The U.S. Energy Information Administration stated that Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices dipped below $70 on July 1 but recovered during the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels a day in the second quarter. It also projected that production shut-ins averaged 8.3 million barrels daily in June, after peaking at 11.2 million in May.
Friday’s settlement left Brent $12.09 above its July 10 close of $76.01. WTI finished $11.08 higher than its $71.41 close from one week prior. These changes 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 oil contracts ended near their session peaks, concluding a week marked by significant price increases and diminished tanker activity through Hormuz.