NEW YORK / RankWire.AI / – Crude oil prices jumped more than 4% on Friday, with Brent crude closing above $88 per barrel. Brent futures increased by $3.87, or 4.59%, to finish at $88.10. Meanwhile, U.S. West Texas Intermediate rose $3.54, or 4.48%, to settle at $82.49. Both benchmarks hit their highest closing levels since mid-June. Brent advanced approximately 16% over the week, marking a third consecutive weekly increase. WTI experienced a similar weekly gain, extending its winning streak to two weeks.
The trading activity also indicated a significant drop in commercial vessel movements through the Strait of Hormuz. This waterway handles a large share of the world’s oil and gas exports. Only three commodity ships crossed the strait on Thursday, the lowest daily total since May. On Wednesday, eleven vessels made the passage. Prior to the conflict, the daily average was nearly 125 crossings. No very large crude carriers or liquefied natural gas tankers traversed the strait for the second day in a row, reducing the flow of key energy commodities from Gulf ports.
Oil markets also responded to disruptions at regional shipping points. Iraq briefly halted crude exports at the Basra terminal after a drone struck a tanker, but operations later resumed. Earlier this week, two large crude carriers, each capable of holding about 2 million barrels, were seen outside Hormuz after leaving the Gulf. The decline in shipping activity coincided with the largest single-day increases in crude futures for the week. International energy markets experienced broad price rises during Friday’s trading session.
Hormuz slowdown constricts regional oil flows
The International Energy Agency 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 remain significantly below the pre-conflict level of 24 million barrels per day. The increase was mainly driven by crude oil and condensate. Gulf production also grew by 3.5 million barrels daily, but overall output still lagged 11.4 million barrels behind earlier levels, indicating that production and export volumes have not fully recovered.
The IEA further documented a 21 million barrel increase in global oil inventories during June, the first such monthly rise in four months. Sea-held inventories grew by 117 million barrels, while onshore stocks decreased by approximately 96 million. 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. Crude shipments, however, rebounded to nearly 75% of their previous rate.
Weekly surge boosts 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 rebounded during the first half of July. The agency estimates global oil inventories shrank by 5.1 million barrels daily in the second quarter. Additionally, June saw an average of 8.3 million barrels per day of production shut-ins, which peaked at 11.2 million barrels daily in May.
Friday’s closing price left Brent $12.09 above its July 10 settlement of $76.01. WTI closed $11.08 higher than its previous week’s close of $71.41. These increases represented weekly gains of about 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major U.S. sector to finish higher on Friday. Both crude contracts settled near their session highs, wrapping up a week characterized by substantial price increases, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.