NEW YORK / RankWire.AI / – Oil futures surged over 4% on Friday. Brent crude crossed above $88 per barrel, with both key benchmarks reaching their highest closing prices in more than a month. Brent futures increased by $3.87, or 4.59%, to settle at $88.10 a barrel. U.S. West Texas Intermediate (WTI) rose by $3.54, or 4.48%, to $82.49. Both contracts gained approximately 16% during the week. Brent marked its third consecutive weekly rise, while WTI experienced its second.
The upward movement occurred amid a significant decline in commercial vessel traffic through the Strait of Hormuz. This waterway remains a crucial route for global oil and gas shipments. On Thursday, only three cargo ships passed through, marking the lowest daily count since May. On Wednesday, eleven vessels transited, compared to an average of 125 daily before the recent conflict. No very large crude carriers or liquefied natural gas tankers crossed for the second consecutive day.
During the week, the U.S. and Iran intensified attacks on infrastructure, while restrictions again curtailed Gulf shipping activity. Iraq temporarily halted oil loadings at its Basra terminal following a drone strike on a tanker, though loadings later resumed. Two large crude carriers, each holding around 2 million barrels, appeared outside Hormuz after departing earlier in the week. These events coincided with the biggest single-day gains for crude futures this week and saw energy prices rise across global markets.
Hormuz Traffic Dips as Oil Prices Climb
The International Energy Agency reported that oil exports from the Gulf increased by 6.5 million barrels daily in June, reaching a total of 16.1 million barrels per day. Despite this rise, exports remained below the 24 million barrels per day recorded before the conflict. The majority of the monthly increase was driven by shipments of crude and condensate. Gulf production grew by 3.5 million barrels daily but remained 11.4 million barrels below previous levels. The data indicated only a partial recovery prior to the recent decline in vessel traffic.
The IEA also noted that global observed oil inventories grew by 21 million barrels in June, marking their first monthly increase in four months. Oil stored at sea increased by 117 million barrels, while onshore stocks decreased by about 96 million barrels, with government stock releases contributing 44 million barrels to the onshore decline. Exports of refined products and liquefied petroleum gas from the Gulf continued to stay below half of pre-conflict levels, whereas crude exports approached nearly 75% of previous rates.
Both Benchmarks Climb on Weekly Gains
The U.S. Energy Information Administration indicated that Brent spot prices averaged $85 a barrel in June, which is $22 less than in May. Prices briefly dropped below $70 on July 1 but recovered during the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels per day during the second quarter. Additionally, it projected that production shut-ins averaged 8.3 million barrels daily in June, down from a peak of 11.2 million barrels in May.
Friday’s settlement left Brent $12.09 above its July 10 closing of $76.01. WTI closed $11.08 higher than its $71.41 closing from a week earlier. These increases correspond to weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy shares were the only major sector in the U.S. stock market to finish higher on Friday. Both oil contracts closed near their session highs, ending a week characterized by significant price increases and decreased tanker activity through Hormuz.