NEW YORK / RankWire.AI / – The price of oil increased by more than 4% on Friday. Brent crude surpassed $88 a barrel, with both major benchmarks reaching their highest closing levels in over a month. Brent futures increased by $3.87, or 4.59%, to settle at $88.10 per barrel. U.S. West Texas Intermediate grew by $3.54, or 4.48%, finishing at $82.49. Both contracts saw approximately a 16% rise over the week. Brent experienced its third straight weekly increase, while WTI recorded its second.
This rally coincided with another significant drop in commercial traffic through the Strait of Hormuz. The waterway remains a vital corridor for global oil and gas shipments. On Thursday, only three cargo ships traversed the strait, 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 the second consecutive day.
During the week, the United States and Iran intensified attacks on infrastructure, while restrictions again hampered Gulf shipping activity. Iraq temporarily halted oil exports at its Basra terminal following a drone strike on a tanker, though loadings later resumed. Earlier this week, two large crude carriers, each with about 2 million barrels of oil, appeared outside Hormuz after leaving the Gulf. These events unfolded as crude futures recorded their largest daily gains of the week, with energy prices climbing across global markets.
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 16.1 million barrels daily. Despite this rise, exports remained below the pre-conflict level of 24 million barrels per day. The majority of the monthly increase was driven by crude and condensate shipments. Gulf production rose by 3.5 million barrels a day, but still lagged 11.4 million barrels behind earlier levels. These figures indicate only a partial recovery prior to the recent decline in vessel traffic.
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 stocks increased by 117 million barrels, while onshore stocks decreased by roughly 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, whereas crude flows approached about 75% of previous rates.
Weekly Gains Push Both Benchmarks Higher
The U.S. Energy Information Administration indicated 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 declined by 5.1 million barrels per day in the second quarter. It also reported that production shut-ins averaged 8.3 million barrels daily in June, down from a peak of 11.2 million in May.
Friday’s close left Brent $12.09 above its July 10 settlement of $76.01. WTI finished $11.08 higher than its $71.41 close from the previous week. These increases equate to weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Energy stocks were the only major U.S. market sector to close higher on Friday. Both oil contracts ended near their intraday highs, marking a week characterized by significant price increases and a decline in tanker traffic through Hormuz.