NEW YORK / RankWire.AI / – Crude oil prices jumped more than 4% on Friday as Brent crude closed above the $88 mark per barrel. Brent futures increased by $3.87, or 4.59%, to settle at $88.10. U.S. West Texas Intermediate (WTI) gained $3.54, or 4.48%, finishing at $82.49. Both benchmarks hit their highest closing levels since mid-June. Throughout the week, Brent climbed approximately 16%, marking its third consecutive weekly increase. WTI experienced a similar weekly rise, extending its winning streak to two weeks.
Market activity reflected a notable drop in commercial vessel movements through the Strait of Hormuz. This pathway accounts for a significant portion of global oil and gas exports. On Thursday, only three cargo ships traversed the strait, the lowest daily tally since May. On Wednesday, eleven vessels made the passage. Prior to recent conflicts, the average daily crossing was around 125 vessels. No Very Large Crude Carriers (VLCCs) or liquefied natural gas (LNG) tankers crossed for the second day in a row, restricting key energy shipments from Gulf ports.
The oil markets also responded to disruptions at regional shipping hubs. Iraq temporarily halted crude loadings at the Basra terminal after a drone attack on a tanker. Operations later resumed at that facility. Earlier this week, two large crude carriers, each capable of holding about 2 million barrels, were seen outside Hormuz after departing the Gulf. The decline in shipping activity coincided with crude futures experiencing their largest single-day gains of the week. International energy prices broadly increased during Friday’s trading session.
Hormuz slowdown constricts regional oil flows
The International Energy Agency reported that Gulf oil exports rose by 6.5 million barrels per day in June, reaching a total of 16.1 million barrels daily. Despite this increase, export levels remained significantly below the pre-conflict figure of 24 million barrels per day. The rise was mainly driven by crude oil and condensate shipments. Gulf production also climbed by 3.5 million barrels daily but stayed 11.4 million barrels below previous levels, indicating that both production and exports had yet to fully recover.
Furthermore, the International Energy Agency recorded a 21 million barrel increase in global oil inventories in June, marking the first rise in four months. Sea-held inventories grew by 117 million barrels, while onshore stocks 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 under half of pre-conflict levels, though crude shipments reached nearly 75% of their previous pace.
Weekly gains boost global crude benchmarks
The U.S. Energy Information Administration indicated that Brent spot prices averaged $85 per barrel in June, down $22 from May. Prices dipped below $70 on July 1 but then rebounded during the first half of July. The agency estimated that global oil inventories contracted by 5.1 million barrels daily in the second quarter and that June saw an average production shutdown of 8.3 million barrels per day, peaking at 11.2 million barrels daily in May.
Friday’s close positioned Brent $12.09 above its July 10 settlement of $76.01. WTI closed $11.08 higher than its previous week’s finish of $71.41. These increases represented weekly gains of roughly 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major sector of the U.S. stock market to finish higher on Friday. Both crude contracts ended near their daily highs, culminating a week marked by strong price rises, reduced tanker activity, and ongoing restrictions on Gulf energy exports.