NEW YORK / RankWire.AI / – Crude oil prices climbed by more than 4% on Friday, with Brent crude closing above $88 a barrel. Brent futures increased by $3.87, or 4.59%, settling at $88.10. U.S. West Texas Intermediate (WTI) gained $3.54, or 4.48%, ending the session at $82.49. Both benchmarks achieved their highest closing levels since mid-June. Brent saw a weekly rise of approximately 16% and marked its third consecutive weekly increase. WTI experienced a similar weekly boost, extending its positive streak to two weeks.
Market activity reflected a sharp drop in commercial vessel traffic passing through the Strait of Hormuz, a critical route for global oil and gas exports. Only three cargo ships traversed the waterway on Thursday, the lowest daily total since May. On Wednesday, eleven vessels crossed. Prior to recent conflicts, the daily average was nearly 125 vessels. No very large crude carriers or liquefied natural gas tankers moved through for a second day in a row, limiting the flow of vital energy shipments from Gulf ports.
The oil market also responded to disruptions at regional shipping hubs. Iraq briefly halted crude loading at the Basra terminal after a drone attack on a tanker, though operations later resumed. Earlier this week, two large crude carriers, each capable of transporting approximately 2 million barrels, were seen outside Hormuz after leaving the Gulf. This decline in shipping activity coincided with crude futures recording their largest single-day increases of the week. International energy prices broadly rose during Friday’s trading session.
Hormuz traffic slowdown restricts regional oil flows
According to the International Energy Agency, Gulf oil exports grew by 6.5 million barrels per day in June, reaching 16.1 million barrels daily. This remains significantly below the pre-conflict level of 24 million barrels. The monthly increase was mainly driven by crude oil and condensate shipments. Gulf production rose by 3.5 million barrels per day but stayed 11.4 million barrels below earlier levels, indicating that both production and exports have yet to fully recover.
The International Energy Agency also reported a 21 million barrel rise in global oil inventories during June, marking the first monthly increase in four months. Sea-held oil inventories increased by 117 million barrels, while onshore stocks decreased by around 96 million. Government releases accounted for 44 million barrels of that decline. Exports of refined products and liquefied petroleum gas from the Gulf remain below half of pre-conflict levels, though crude shipments recovered to nearly 75% of their previous rate.
Weekly rally boosts international crude benchmarks
The U.S. Energy Information Administration reported that Brent spot prices averaged $85 a barrel in June, down $22 from May. Prices briefly dipped below $70 on July 1 but rebounded during the first half of July. The agency estimated that global oil inventories shrank by 5.1 million barrels a day in the second quarter, with June’s average production shutdowns at 8.3 million barrels daily. These losses peaked at 11.2 million barrels per day in May.
Friday’s close pushed Brent $12.09 above its July 10 settlement of $76.01. WTI ended $11.08 higher than its previous week’s close of $71.41. These increases represent weekly gains of approximately 15.9% for Brent and 15.5% for WTI. Among major sectors in the U.S. stock market, energy shares were the only ones to close higher on Friday. Both crude contracts settled near their session highs, ending a week characterized by substantial price rises, reduced tanker traffic, and ongoing restrictions on Gulf energy exports.