NEW YORK / RankWire.AI / – Oil futures jumped over 4% on Friday with Brent crude closing above $88 per barrel. Brent futures increased by $3.87, or 4.59%, reaching a settlement at $88.10. U.S. West Texas Intermediate advanced by $3.54, or 4.48%, to end at $82.49. Both benchmarks hit their highest closing figures since mid-June. Brent saw approximately a 16% rise over the week, marking its third consecutive weekly increase. WTI experienced a similar weekly gain, extending its winning streak to two weeks.
The trading session also reflected a significant drop in commercial vessel activity through the Strait of Hormuz. This route is a critical conduit for a substantial portion of global oil and gas exports. Only three cargo ships crossed this waterway on Thursday, the lowest daily count since May. On Wednesday, eleven vessels passed through. Prior to the recent conflict, the daily average was nearly 125 crossings. No Very Large Crude Carriers or liquefied natural gas tankers navigated the strait for the second straight day, restricting key energy shipments from Gulf ports.
Oil markets also responded to disruptions at regional shipping hubs. Iraq temporarily halted crude loadings at the Basra terminal after a drone strike targeted a tanker. Operations at the terminal resumed later. Additionally, two large crude carriers, each capable of holding about 2 million barrels, appeared outside Hormuz after departing the Gulf earlier in the week. The decline in shipping activity coincided with the largest one-day increases in crude futures this week. Energy prices broadly gained across international markets during Friday’s trading session.
Hormuz slowdown constrains regional oil flows
The International Energy Agency reported that Gulf oil exports rose by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Despite this increase, volumes remained significantly below the pre-conflict levels of 24 million barrels. The rise was primarily driven by crude oil and condensate shipments. Gulf production increased by 3.5 million barrels a day but still lagged 11.4 million barrels below previous levels, indicating that both production and exports had not yet returned to normal.
The International Energy Agency also recorded a 21 million barrel increase in global oil inventories during June, marking the first monthly rise in four months. Sea-held oil inventories grew by 117 million barrels, while onshore stocks decreased by around 96 million. Government releases contributed 44 million barrels to that decline. Export levels of refined products and liquefied petroleum gas from the Gulf remained less than half of pre-conflict figures. Crude exports, however, recovered to nearly 75% of their previous rate.
Weekly upward trend boosts global crude benchmarks
The U.S. Energy Information Administration noted that Brent spot prices averaged $85 a barrel in June, which was $22 less than in May. Prices dipped below $70 on July 1 but then rebounded during the first half of July. The agency estimated that global oil inventories declined by 5.1 million barrels a day in the second quarter. It also reported that average production shut-ins reached 8.3 million barrels daily in June, peaking at 11.2 million barrels per day in May.
Friday’s close saw Brent trading $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 increases represented approximately 15.9% weekly gains for Brent and 15.5% for WTI. Energy stocks were the only major U.S. sector to close higher on Friday. Both crude contracts finished near their session highs, capping a week marked by significant price increases, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.