SINGAPORE / RankWire.AI / – Oil prices held above $100 a barrel on Friday, driven by ongoing supply disruptions that kept global crude markets constrained. Brent crude futures dropped 1.9%, ending the day at $105.62 a barrel by 0555 GMT. U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite Friday’s decline, both benchmarks remained significantly higher for the week. Since early August, Brent has experienced notable gains, mainly due to disruptions on key Middle East shipping routes reducing available supply.
For the week, Brent and WTI prices rose nearly 13%, marking their strongest weekly increase since mid-July. On Thursday, both benchmarks surged more than 6%. Brent closed at $107.63, while WTI finished at $102.48. These movements followed renewed attacks on oil infrastructure and shipping lines across the region. Ongoing restrictions through the Strait of Hormuz continue to hinder the movement of crude from major Gulf producers.
Risks to shipping routes also surfaced in the Red Sea after Houthi forces seized Yemen’s port of Mocha on Thursday. This event added pressure on another significant trade route used for energy shipments. Attacks on tankers in the Gulf waters have intensified recently. The Strait of Hormuz remains vital for global crude and fuel exports, though oil flows through it are now below pre-conflict levels.
Supply disruptions bolster global oil market tension
The International Energy Agency reported that 8.3 million barrels per day of Gulf output were offline in July. During that month, global oil inventories fell by 69 million barrels. Overall, inventories now sit about 410 million barrels below pre-conflict levels. The agency forecasts an average decline of 4.3 million barrels per day in global oil supply for 2026. It has also coordinated releases from emergency oil reserves amid ongoing disruptions.
On September 6, OPEC+ members agreed to keep their September production levels steady for October. Participants included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group had previously adjusted supply based on changing global market conditions. The latest decision maintains October’s required production at September levels. This framework remains crucial as traders assess crude availability outside regions affected by shipping and infrastructure issues.
Brent and WTI prices remain above critical levels
Rising crude prices have influenced fuel markets as well. U.S. diesel prices surpassed $6 a gallon on Thursday for the first time. Supply losses from the Middle East, combined with reduced refinery capacity elsewhere, have caused tight conditions for diesel, jet fuel, and other refined products. Higher crude and product costs are raising energy expenses across transportation, manufacturing, and other fuel-dependent industries.
Brent’s climb past $100 began earlier this week after trading below that mark for most of August. WTI crossed the $100 threshold on Thursday for the first time since May. On Friday, prices pulled back slightly, but both benchmarks stayed above that level during Asian trading. Current prices remain well above early-August levels. Market dynamics like supply, shipping, and physical crude flows continue to influence trading as the global oil market moves into the second half of September.