SINGAPORE / RankWire.AI / – Oil prices sustained above the $100 mark on Friday amid ongoing supply interruptions that have kept the global crude oil market constrained. Brent crude futures decreased by 1.9% to reach $105.62 per barrel by 0555 GMT, while U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite the slight decline on Friday, both benchmarks maintained significant weekly gains. Since early August, Brent has experienced strong growth, driven by disruptions along major Middle Eastern shipping routes that have limited available supply.
For the week, Brent and WTI prices increased by nearly 13%, marking their most robust weekly rise since mid-July. Both benchmarks surged over 6% on Thursday, with Brent ending that session at $107.63 and WTI closing at $102.48. These price movements followed renewed attacks impacting oil infrastructure and shipping lanes across the region. Persistent restrictions on traffic through the Strait of Hormuz have continued to hinder crude movement from key Gulf producers.
The risks to shipping routes have expanded to the Red Sea after Houthi forces seized control of Yemen’s port of Mocha on Thursday. This event added further pressure to an already strained trade corridor critical for energy shipments. Additionally, recent days have seen an uptick in tanker attacks around Gulf waters. The Strait of Hormuz remains vital for global crude and fuel exports, but oil flows through this waterway are currently below levels seen before the ongoing conflict intensified.
Global oil markets face tightening due to persistent supply disruptions
The International Energy Agency reported that 8.3 million barrels per day of Gulf output remained offline in July, contributing to a decline of 69 million barrels in global oil inventories during that month. Current inventory levels are approximately 410 million barrels lower than at the onset of the conflict. The agency forecasts an average global oil supply reduction of 4.3 million barrels per day in 2026, with coordinated efforts including releases from emergency reserves during ongoing disruptions.
On September 6, OPEC+ members agreed to maintain their September required production levels for October, involving Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group had previously adjusted supply levels as members evaluated changing global market conditions. This latest decision kept October’s required production unchanged from September, emphasizing the importance of the current production framework as traders continue to monitor crude availability outside regions affected by shipping and infrastructure issues.
Crude benchmarks remain significantly above critical price points
Rising crude prices have led to increased costs in fuel markets. U.S. national diesel prices surpassed $6 a gallon on Thursday for the first time. The combined effect of Middle East supply disruptions and reduced refinery capacity in other areas has caused tight supplies of diesel, jet fuel, and other refined products. These elevated costs have driven up energy prices across various sectors reliant on petroleum fuels, including transportation and manufacturing.
Brent began trading above $100 earlier in the week after lingering below that level for most of August. WTI crossed the $100 threshold on Thursday, marking its first such move since May. Friday’s decline saw both benchmarks remain above $100 during Asian trading, with current prices well above their early-August levels. As the second half of September progresses, crude availability, shipping dynamics, and physical flows continue to influence trading behavior in the global oil market.