SINGAPORE / RankWire.AI / – Oil prices stayed above the $100 mark per barrel on Friday amid ongoing supply disruptions that keep the international crude market constrained. Brent crude futures decreased 1.9% to $105.62 a barrel by 0555 GMT, while U.S. West Texas Intermediate crude dipped 1.4% to $101.10. Despite Friday’s decline, both benchmarks maintained significant weekly gains. Since early August, Brent has experienced substantial increases due to disruptions along major Middle East shipping corridors, reducing the available supply.
For the week, Brent and WTI surged nearly 13%, marking their most robust weekly rise since mid-July. Both benchmarks climbed over 6% on Thursday, with Brent ending at $107.63 and WTI at $102.48. These movements followed renewed attacks impacting oil infrastructure and shipping routes throughout the region. Persistent restrictions on traffic through the Strait of Hormuz continue to hamper crude exports from leading Gulf producers.
The shipping risks extended into the Red Sea after Houthi forces seized control of Yemen’s port of Mocha on Thursday, adding further pressure to a crucial trade route used for energy shipments. Additionally, attacks on tankers have intensified around the Gulf waters in recent days. The Strait of Hormuz remains vital for global crude and fuel exports, with oil flows through the waterway still below pre-conflict levels.
Supply Disruptions Keep Oil Market Tight
According to the International Energy Agency, 8.3 million barrels per day of Gulf output remained offline in July, with global oil inventories declining by 69 million barrels during that month. Current inventories are approximately 410 million barrels below pre-conflict levels. The agency forecasts an average annual decline in global oil supply of 4.3 million barrels per day for 2026 and has coordinated emergency oil reserve releases during this period of disruption.
On September 6, OPEC+ producers agreed to sustain their September production levels into October, with Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman participating in the decision. Having previously adjusted supplies based on evolving market conditions, the group’s latest move leaves October’s required output unchanged from September. This framework remains critical as traders monitor available crude from regions unaffected by shipping and infrastructure issues.
Prices of Brent and WTI Remain Elevated
Rising crude prices have influenced fuel markets, with U.S. diesel prices exceeding $6 a gallon on Thursday for the first time. Supply losses from the Middle East, combined with reduced refinery capacity elsewhere, have resulted in tight supplies of diesel, jet fuel, and other refined products. These increases in crude and product costs have raised energy expenses across transportation, manufacturing, and industries heavily reliant on petroleum fuels.
Brent’s ascent above $100 began earlier in the week after trading below that level most of August, while WTI crossed that threshold on Thursday for the first time since May. Despite Friday’s retreat, both benchmarks remained above $100 during Asian trading, maintaining levels well above those seen in early August. Continued shifts in supply availability, shipping routes, and physical crude flows are shaping trading activities as the global oil market advances into the second half of September.