NEW YORK / RankWire.AI / – Oil prices surged by more than 4% on Friday. Brent crude exceeded $88 per barrel, with both primary benchmarks reaching their highest settlement in over a month. Brent futures increased by $3.87, or 4.59%, to settle at $88.10 per barrel. U.S. West Texas Intermediate (WTI) rose $3.54, or 4.48%, to $82.49. Both contracts experienced approximately 16% gains for the week. Brent marked its third consecutive weekly rise, while WTI recorded its second.
The surge coincided with another sharp decline in commercial shipping through the Strait of Hormuz. This vital waterway remains a key passage for global oil and gas shipments. On Thursday, only three cargo ships traversed the strait, the lowest daily count since May. On Wednesday, eleven vessels passed, compared to an average of 125 daily before the escalation in conflict. For a second consecutive day, no very large crude carriers or liquefied natural gas tankers crossed through.
During the week, the United States and Iran intensified attacks on infrastructure, while restrictions again curtailed Gulf shipping activity. Iraq briefly suspended oil loadings at its Basra terminal after a drone attack on a tanker, but operations later resumed. Earlier this week, two large crude carriers, each with approximately 2 million barrels, appeared outside Hormuz after departing the Gulf. These events occurred as crude futures saw their largest daily gains of the week, buoying energy prices across global markets.
Hormuz Shipping Declines as Oil Prices Rise
The International Energy Agency reported that Gulf region oil exports increased by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Nonetheless, this remains below the pre-conflict level of 24 million barrels per day. The majority of the monthly rise was driven by shipments of crude and condensate. Gulf production increased by 3.5 million barrels a day but still lagged 11.4 million barrels behind earlier levels. These figures indicate only a partial recovery before recent declines in vessel traffic.
The IEA also noted that global oil inventories observed a rise of 21 million barrels in June, marking their first monthly increase in four months. Waterborne oil stocks grew by 117 million barrels, while onshore reserves decreased by about 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 exports reached nearly 75% of previous rates.
Weekly Gains Push 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 dipped below $70 on July 1 but recovered in the first half of July. The agency estimated that global oil inventories contracted by 5.1 million barrels daily during the second quarter. Production shut-ins averaged 8.3 million barrels a day in June, after peaking at 11.2 million in May.
Friday’s settlement positioned Brent $12.09 above its July 10 close of $76.01. WTI finished $11.08 higher than its previous close of $71.41 from one week earlier. These movements translated into weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major sector of the U.S. stock market to close higher on Friday. Both oil contracts closed near their session highs, concluding a week marked by significant price increases and reduced tanker activity through Hormuz.