SINGAPORE / RankWire.AI / – Oil prices continued to stay above the $100 mark on Friday, driven by ongoing supply disruptions that have kept global crude markets tight. Brent crude futures declined by 1.9%, settling at $105.62 per barrel as of 0555 GMT, while U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite the decline on Friday, both benchmarks maintained significant gains for the week, reflecting a strong upward trend since early August, when disruptions along key Middle East shipping routes reduced available supply, leading to a surge in prices.
The week saw Brent and WTI rise nearly 13%, marking their most substantial weekly increase since mid-July, with both benchmarks gaining more than 6% on Thursday alone. Brent closed Thursday at $107.63, and WTI settled at $102.48, with market movements driven by renewed attacks impacting oil infrastructure and shipping routes across the region. Continued restrictions on traffic through the Strait of Hormuz have persisted, limiting crude shipments from major Gulf producers and keeping supply tight.
The risks to shipping routes extended beyond the Gulf, as Houthi forces seized control of Yemen’s port of Mocha on Thursday, adding further pressure to another vital trade corridor used for energy shipments. Additionally, recent days have seen an increase in tanker attacks around Gulf waters, emphasizing the strategic importance of the Strait of Hormuz for global crude and fuel exports. Oil flows through this route are still below pre-conflict levels, highlighting ongoing supply challenges.
Supply disruptions continue to tighten the international oil market
According to the International Energy Agency, in July, 8.3 million barrels per day of Gulf output remained offline, with global oil inventories decreasing by 69 million barrels during that period. Overall, inventories now sit approximately 410 million barrels below levels recorded at the onset of the conflict. The agency forecasts a global oil supply reduction averaging 4.3 million barrels per day in 2026, and has coordinated releases from emergency reserves to mitigate the impact of ongoing disruptions.
On September 6, OPEC+ producers reaffirmed their commitment to maintaining their required production levels for October, with Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participating in the decision. Previously, the group adjusted output in response to changing global market conditions, and the latest decision leaves October production levels unchanged from those in September. This framework remains crucial as traders continue to monitor crude availability from regions unaffected by shipping and infrastructure disturbances.
Crude prices hold firmly above key thresholds
The rise in crude prices has also affected fuel markets, with U.S. national diesel prices exceeding $6 a gallon on Thursday for the first time. The combination of supply shortages from the Middle East and reduced refinery capacity elsewhere has created tight conditions for diesel, jet fuel, and other refined products. As a result, energy costs across transportation, manufacturing, and other sectors reliant on petroleum-based fuels have increased significantly.
The move above $100 for Brent began earlier in the week after it traded below that level throughout most of August, while WTI crossed the $100 mark on Thursday for the first time since May. Despite Friday’s retreat, both benchmarks remained above that threshold during Asian trading, maintaining prices well above their early-August levels. As the second half of September unfolds, supply conditions, shipping access, and physical crude flows continue to influence market dynamics.