NEW YORK / RankWire.AI / – Global oil prices rose more than 4% Friday, pushing Brent crude above $88 a barrel. Brent futures gained $3.87, or 4.59%, to settle at $88.10. U.S. West Texas Intermediate increased $3.54, or 4.48%, to close at $82.49. Both benchmarks reached their highest closing levels since mid-June. Brent advanced about 16% for the week and posted a third consecutive weekly gain. WTI recorded a similar increase and rose for a second straight week.
The advance came as commercial shipping through the Strait of Hormuz fell sharply. The waterway handles a significant share of global oil and gas exports. Three commodity vessels crossed on Thursday, marking the lowest daily count since May. Eleven vessels completed the passage on Wednesday. Traffic had averaged about 125 vessels a day before the conflict. No very large crude carriers or liquefied natural gas tankers crossed for a second consecutive day, restricting the movement of major energy cargoes.
Regional shipping disruptions also affected oil operations during the week. Iraq briefly suspended crude loadings at its Basra terminal after a drone struck a tanker. The terminal later resumed operations. Two large crude carriers appeared outside Hormuz after departing the Gulf earlier in the week. Each vessel can carry about 2 million barrels of oil. Crude futures recorded their largest daily gains of the week as tanker traffic declined and energy prices strengthened across major international markets.
Tanker traffic drops across key Gulf route
Gulf oil exports increased by 6.5 million barrels a day in June, according to the International Energy Agency. Total shipments reached 16.1 million barrels a day. That figure remained below the 24 million barrels recorded before the conflict. Crude oil and condensate generated most of the monthly increase. Gulf production rose by 3.5 million barrels a day during June. However, regional output remained 11.4 million barrels below earlier levels despite the recovery in production and export volumes.
Observed global oil inventories increased by 21 million barrels in June, the first monthly rise in four months. Oil stored on vessels grew by 117 million barrels. Onshore inventories dropped by about 96 million barrels during the same period. Government stock releases contributed 44 million barrels to the decline in land-based supplies. Gulf exports of refined products and liquefied petroleum gas remained below half of earlier levels. Crude shipments recovered to nearly three-quarters of their pre-conflict rate.
Brent and WTI record steep weekly gains
The U.S. Energy Information Administration said Brent spot prices averaged $85 a barrel in June. That average stood $22 below the May level. Brent later traded below $70 on July 1 before recovering during the first half of July. The agency estimated that global oil inventories fell by 5.1 million barrels a day during the second quarter. Production shut-ins averaged 8.3 million barrels a day in June after reaching 11.2 million barrels a day in May.
Brent ended Friday $12.09 above its July 10 settlement of $76.01. WTI closed $11.08 above its previous weekly finish of $71.41. Those movements represented weekly gains of about 15.9% for Brent and 15.5% for WTI. Energy shares formed the only major U.S. stock market sector to finish higher Friday. Both crude contracts settled near their session highs after a week of rising prices, reduced tanker movements and continued limits on Gulf oil exports.