NEW YORK / RankWire.AI / – Oil prices experienced a significant rise of over 4% on Friday as Brent crude closed above $88 per barrel. Brent futures increased by $3.87, or 4.59%, to end at $88.10. Meanwhile, U.S. West Texas Intermediate gained $3.54, or 4.48%, closing at $82.49. Both benchmarks reached their highest closing levels since mid-June. Brent gained approximately 16% over the week and secured a third consecutive weekly increase. WTI similarly posted a weekly rise and extended its winning streak to two weeks.
Market activity also reflected a sharp decline in commercial vessel traffic through the Strait of Hormuz. This route is a key conduit for a large share of global oil and gas exports. On Thursday, only three commodity ships traversed the waterway, marking the lowest daily total since May. The previous day saw eleven vessels crossing. Prior to recent conflicts, the daily average was around 125 vessels. No very large crude carriers or liquefied natural gas tankers have crossed for two consecutive days, limiting the movement of vital 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 attack on a tanker, though operations later resumed. Two sizable crude carriers, each capable of holding about 2 million barrels, appeared outside Hormuz after departing the Gulf earlier this week. The decrease in shipping activity coincided with the largest single-day increases in crude futures this week. Overall, energy prices climbed broadly across international markets during Friday’s trading session.
Hormuz slowdown tightens 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, exports remained well below the pre-conflict level of 24 million barrels per day. The majority of the monthly rise was driven by crude oil and condensate. Gulf production increased by 3.5 million barrels per day, but overall output was still 11.4 million barrels below previous levels, indicating that production and exports had not fully recovered.
The International Energy Agency also documented 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 approximately 96 million, with government stock releases accounting for 44 million of that decline. 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 rate.
Weekly rally boosts global crude 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 subsequently climbed 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, with average production shut-ins at 8.3 million barrels daily in June. These losses peaked at 11.2 million barrels per day in May.
Friday’s closing price left Brent $12.09 above its July 10 settlement of $76.01. WTI closed $11.08 higher than its previous week’s close of $71.41. These changes represented weekly increases of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major U.S. sector to gain on Friday. Both crude contracts settled near their session highs, concluding a week marked by strong price gains, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.