NEW YORK / RankWire.AI / – Crude oil prices surged by more than 4% on Friday. Brent crude crossed the $88 per barrel mark, with both main benchmarks reaching their highest closing levels in over a month. Brent futures increased by $3.87, or 4.59%, settling at $88.10 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) rose by $3.54, or 4.48%, to close at $82.49. Both contracts experienced approximately 16% gains over the week. Brent marked its third consecutive weekly rise, while WTI saw its second.
The upward move occurred amid a significant drop in commercial activity through the Strait of Hormuz. This vital waterway remains a key route for global oil and gas shipments. On Thursday, only three cargo ships crossed the strait, the lowest daily count since May. On Wednesday, eleven vessels transited, compared to an average of 125 daily before the conflict escalated. No very large crude carriers or liquefied natural gas tankers crossed for a second consecutive day.
During the week, the United States and Iran intensified attacks on infrastructure, while restrictions continued to limit Gulf shipping activity. Iraq temporarily halted oil loadings at its Basra terminal following a drone strike on a tanker. Loadings later resumed. Additionally, two large crude carriers, each capable of carrying about 2 million barrels, appeared outside Hormuz after departing the Gulf earlier in the week. These developments coincided with the biggest single-day gains of the week in crude futures and a rise in energy prices across global markets.
Vessel Traffic at Hormuz Declines as Oil Prices Rise
The International Energy Agency reported that oil exports from the Gulf increased by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Despite this rise, exports remained below the pre-conflict level of 24 million barrels per day. The monthly growth was mainly driven by crude and condensate shipments. Gulf production increased by 3.5 million barrels daily but stayed 11.4 million barrels below earlier levels. These figures show only a partial recovery prior to the recent decline in vessel activity.
The IEA also noted that global oil inventories grew by 21 million barrels in June, marking their first monthly increase in four months. Waterborne oil stocks increased by 117 million barrels, while onshore inventories decreased by approximately 96 million barrels. Government releases contributed 44 million barrels to the onshore decline. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, whereas crude oil flows reached nearly 75% of previous rates.
Weekly Market Gains Push Both Benchmarks Higher
The U.S. Energy Information Administration indicated that Brent spot prices averaged $85 a barrel in June, which is $22 less than in May. Prices dipped below $70 on July 1 but recovered during the first half of July. The agency estimates that global oil inventories shrank by 5.1 million barrels per day in the second quarter. It also projected that production shut-ins averaged 8.3 million barrels daily in June, down from a peak of 11.2 million in May.
Friday’s closing prices left Brent $12.09 above its July 10 close of $76.01. WTI ended $11.08 higher than its $71.41 close from the previous week. These increases correspond to weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major U.S. stock sector to close higher on Friday. Both oil benchmarks finished near their session highs, concluding a week characterized by substantial price increases and diminished tanker traffic through Hormuz.