NEW YORK / RankWire.AI / – Crude oil prices surged by more than 4% on Friday. Brent crude exceeded $88 per barrel, with both key benchmarks reaching their highest closing levels in over a month. Brent futures gained $3.87, or 4.59%, settling at $88.10 per barrel. U.S. West Texas Intermediate increased by $3.54, or 4.48%, to $82.49. Both contracts experienced approximately 16% gains over the week. Brent achieved a third straight weekly rise, while WTI marked its second consecutive weekly increase.
The rally coincided with a significant drop in commercial vessel traffic through the Strait of Hormuz. This vital waterway remains a crucial route for global oil and gas shipments. On Thursday, only three cargo ships crossed, the lowest daily count since May. On Wednesday, eleven vessels transited, compared to an average of 125 daily 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 intensified attacks on infrastructure, while restrictions again curtailed Gulf shipping activity. Iraq temporarily halted oil loadings at its Basra terminal after a drone strike on a tanker, though operations later resumed. Earlier this week, two large crude carriers, each carrying about 2 million barrels, appeared outside Hormuz after leaving the Gulf. These events coincided with the largest daily gains of the week in crude futures and a rise in energy prices in global markets.
Hormuz Traffic Declines as Oil Prices Rise
The International Energy Agency reported that Gulf oil exports increased by 6.5 million barrels per day in June, reaching 16.1 million barrels daily. Nonetheless, this remains below the pre-conflict level of 24 million barrels per day. The growth was primarily driven by crude and condensate shipments. Gulf production rose by 3.5 million barrels per day but was still 11.4 million barrels below earlier levels. These figures indicated only a partial recovery before recent declines in vessel traffic.
The IEA also stated that global observed oil inventories rose 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 roughly 96 million barrels, with government stock releases accounting for 44 million barrels of that decline. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, whereas crude exports reached nearly 75% of previous rates.
Weekly Gains Drive Both Benchmarks Higher
The U.S. Energy Information Administration indicated that Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices later dipped below $70 on July 1 but recovered during the first half of July. The agency estimated that global oil inventories declined by 5.1 million barrels per day in the second quarter. It also noted that production shut-ins averaged 8.3 million barrels daily in June, after peaking at 11.2 million in May.
Friday’s settlement placed Brent $12.09 above its July 10 close of $76.01. WTI finished $11.08 above its previous week’s close of $71.41. These figures represented weekly increases of about 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major sector in the U.S. stock market to close higher on Friday. Both oil contracts finished near their session highs, closing a week characterized by significant price increases and diminished tanker activity through Hormuz.