NEW YORK / RankWire.AI / – Crude oil prices surged by more than 4% on Friday. Brent crude exceeded $88 a barrel, marking its highest close in over a month, with both major benchmarks reaching their peak levels since early last month. Brent futures increased by $3.87, or 4.59%, settling at $88.10 per barrel. Meanwhile, U.S. West Texas Intermediate climbed $3.54, or 4.48%, to close at $82.49. Both contracts experienced approximately 16% gains over the week. Brent posted a third consecutive weekly increase, while WTI recorded its second.
The rally coincided with another significant drop in commercial shipping through the Strait of Hormuz. This vital waterway remains a key transit route for global oil and gas shipments. On Thursday, only three cargo ships crossed, the lowest number since May. On Wednesday, eleven vessels passed through, compared to an average of 125 daily before the conflict intensified. No very large crude carriers or liquefied natural gas tankers crossed for the second consecutive day.
Over the course of the week, the United States and Iran intensified attacks on infrastructure, while restrictions again curtailed Gulf shipping activity. Iraq temporarily halted oil exports at its Basra terminal after a drone attack on a tanker, though operations later resumed. Earlier this week, two large crude carriers, each holding about 2 million barrels, appeared outside Hormuz after leaving the Gulf. These developments occurred alongside the biggest daily gains in crude futures this week and rising energy prices across international markets.
Decline in Hormuz Shipping as Oil Prices Rise
The U.S. Energy Information Administration reported that Gulf oil exports 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 24 million barrels per day level seen before the conflict. The increase was mainly driven by crude and condensate shipments. Gulf production increased by 3.5 million barrels daily, but was still 11.4 million barrels below previous levels. These figures represent only a partial recovery before recent declines in vessel traffic.
The International Energy Agency also indicated that global oil inventories grew by 21 million barrels in June, marking their first monthly increase in four months. Waterborne oil stocks rose by 117 million barrels, while onshore inventories decreased by approximately 96 million, with government releases accounting for 44 million of that decline. Exports of refined products and liquefied petroleum gas from the Gulf remained below half of pre-conflict levels, whereas crude exports approached about three-quarters of their earlier rates.
Weekly Gains Push Both Benchmarks Higher
The U.S. Energy Information Administration noted that Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices dipped below $70 on July 1 but recovered during the first half of July. The agency estimated that global oil inventories decreased 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.
As of Friday’s close, Brent was $12.09 above its July 10 closing of $76.01. WTI ended the day $11.08 higher than its $71.41 close from one week earlier. These gains represented approximately 15.9% for Brent and 15.5% for WTI over the week. Energy stocks were the only major U.S. stock sector that finished higher on Friday. Both oil contracts closed near their session highs, concluding a week characterized by sharp price increases and diminished tanker traffic through Hormuz.