NEW YORK / RankWire.AI / – Oil prices surged more than 4% on Friday. Brent crude moved above $88 a barrel, with both primary benchmarks reaching their highest settlements in over a month. Brent futures increased by $3.87, or 4.59%, to close at $88.10 per barrel. U.S. West Texas Intermediate (WTI) rose by $3.54, or 4.48%, finishing at $82.49. Both contracts gained roughly 16% over the week. Brent posted its third straight weekly rise, while WTI experienced its second.
The rally coincided with another significant drop in commercial vessel traffic through the Strait of Hormuz. This waterway remains a key corridor for global oil and gas shipments. Only three cargo ships traversed the strait on Thursday, marking the lowest daily count since May. On Wednesday, eleven vessels passed through, compared to an average of 125 daily before the conflict. No very large crude carriers or liquefied natural gas tankers crossed for a second consecutive day.
During the week, the United States and Iran intensified attacks on infrastructure, while restrictions again limited Gulf shipping activity. Iraq temporarily halted oil loadings at its Basra terminal after a drone strike targeted a tanker. Loadings later resumed. Earlier in the week, two large crude carriers, each carrying around 2 million barrels, appeared outside Hormuz after departing the Gulf. These developments occurred as crude futures posted their largest daily gains of the week and energy prices climbed globally.
Vessel Traffic in Hormuz Declines as Oil Prices Rise
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 remained below the pre-conflict level of 24 million barrels per day. Most of the monthly increase was driven by shipments of crude and condensate. Gulf production increased by 3.5 million barrels daily but still lagged 11.4 million barrels behind previous levels. These figures indicate only a partial recovery before the recent decline in vessel movements.
The IEA also noted that global oil inventories grew by 21 million barrels in June, marking their first monthly increase in four months. Waterborne oil inventories grew by 117 million barrels, while onshore stocks decreased by approximately 96 million. Government releases accounted for 44 million barrels of the onshore decline. Exports of refined products and liquefied petroleum gas from the Gulf region remained below half of pre-conflict levels, whereas crude exports approached about 75% of prior rates.
Weekly Price Gains Support Both Benchmarks
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 dipped below $70 on July 1 but recovered during the first half of July. The agency estimates that global oil inventories decreased by 5.1 million barrels per day in the second quarter. It also reports that production shutdowns averaged 8.3 million barrels daily in June, down from a peak of 11.2 million in May.
On Friday, Brent settled at $12.09 above its July 10 close of $76.01. WTI closed $11.08 higher than its previous week’s finish of $71.41. These movements resulted in weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major sector in the U.S. stock market to finish higher on Friday. Both oil contracts closed near their session highs, concluding a week marked by substantial price increases and decreased tanker activity through Hormuz.