NEW YORK / RankWire.AI / – Oil prices surged by more than 4% on Friday. Brent crude surpassed $88 a barrel, with both key benchmarks reaching their highest closes in over a month. Brent futures increased by $3.87, or 4.59%, to settle at $88.10 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) climbed $3.54, or 4.48%, ending at $82.49. Both contracts saw roughly a 16% rise over the week. Brent experienced its third consecutive weekly gain, while WTI marked its second.
This surge occurred amid another significant decrease in commercial shipping through the Strait of Hormuz. This strategic waterway continues to be a key route for global oil and gas shipments. On Thursday, only three cargo vessels traversed the strait—the lowest daily number since May. On Wednesday, eleven vessels passed, compared to an average of 125 daily before the recent conflicts. No very large crude carriers or liquefied natural gas tankers crossed the strait for the second consecutive day.
Throughout the week, the United States and Iran intensified attacks on infrastructure, while restrictions once again curtailed Gulf shipping activity. Iraq temporarily halted oil loadings at its Basra terminal after a drone struck a tanker, though loadings later resumed. Two large crude carriers, each capable of carrying about 2 million barrels, appeared outside Hormuz after leaving the Gulf earlier in the week. These developments coincided with the biggest daily gains of the week in crude futures and a general rise in energy prices across global markets.
Traffic through Hormuz declines as crude prices rise
The International Energy Agency reported a 6.5 million barrels per day increase in Gulf oil exports in June, bringing total exports to 16.1 million barrels daily. However, this level remains below the pre-conflict figure of 24 million barrels per day. Most of the monthly increase was driven by shipments of crude and condensate. Gulf production rose by 3.5 million barrels daily but still lagged 11.4 million barrels behind earlier levels. The data reflected only a partial recovery before the recent decline in vessel traffic.
The IEA also indicated that global oil inventories increased by 21 million barrels in June, marking their first monthly rise in four months. Waterborne oil stocks grew by 117 million barrels, while onshore inventories decreased by approximately 96 million. Government releases accounted for 44 million barrels of the onshore decline. Exports of refined products and liquefied petroleum gas from the Gulf remained below 50% of pre-conflict levels, whereas crude exports approached about 75% of earlier rates.
Weekly increases boost both benchmarks
The U.S. Energy Information Administration noted that Brent spot prices averaged $85 a barrel in June, which is $22 less than in May. Prices briefly dropped below $70 on July 1 but recovered in the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels per day during the second quarter. It also reported that production shut-ins averaged 8.3 million barrels daily in June, down from a peak of 11.2 million in May.
At settlement, Brent was $12.09 higher than its July 10 close of $76.01. WTI closed $11.08 above its previous week’s close of $71.41. These changes resulted in weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major sector in the U.S. stock market to finish higher on Friday. Both oil contracts closed near their session highs, ending a week characterized by sharp price increases and decreased tanker traffic through Hormuz.