SINGAPORE / RankWire.AI / – Oil prices held steady above $100 per barrel on Friday, driven by ongoing supply disruptions that continue to tighten the global crude oil markets. Brent crude futures decreased by 1.9% to $105.62 a barrel as of 0555 GMT. Meanwhile, U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite Friday’s decline, both benchmarks maintained significant gains for the week, reflecting a strong upward trend since early August, when disruptions along major Middle East shipping corridors reduced available supply.
For the week, Brent and WTI experienced nearly a 13% increase, marking their most robust weekly rise since mid-July. Both indices advanced more than 6% on Thursday, with Brent ending that day at $107.63 and WTI settling at $102.48. These movements follow renewed attacks on regional oil infrastructure and shipping routes, which have kept traffic through the Strait of Hormuz constrained and limited crude exports from key Gulf producers.
The threat to shipping lanes has extended into the Red Sea after Houthi forces captured Yemen’s port of Mocha on Thursday, adding pressure to another major energy trade route. In recent days, attacks on tankers have increased around the Gulf waters, emphasizing the ongoing risk to oil movements. The Strait of Hormuz remains an essential passage for the world’s crude and fuel exports, although oil flow levels continue to stay below pre-conflict benchmarks, reflecting ongoing disruptions in the region.
Disruptions to supply intensify the global oil market squeeze
The International Energy Agency reported that in July, 8.3 million barrels per day of Gulf output were still offline. Additionally, worldwide oil inventories declined by 69 million barrels in the same month, bringing total stocks to approximately 410 million barrels below levels seen at the start of the conflict. The IEA projects a global oil supply reduction of an average 4.3 million barrels per day in 2026 and has coordinated releases from emergency reserves to mitigate some of the disruptions.
On September 6, OPEC+ members agreed to uphold their September production quotas for October, with Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participating in this decision. The group had previously made adjustments in response to changing market conditions. The current decision maintains October’s required output at September levels, emphasizing the importance of available crude supplies, especially as traders monitor the flow of oil from regions unaffected by shipping and infrastructure issues.
Crude prices remain well above key thresholds amid ongoing market pressure
The rise in crude prices has also impacted fuel markets. U.S. national diesel prices surpassed $6 a gallon on Thursday for the first time, driven by supply shortages from the Middle East and decreased refinery capacity in other parts of the world. Tight conditions have also affected jet fuel and other refined products. The escalation in crude and product prices has pushed up energy costs across sectors such as transportation and manufacturing, which rely heavily on petroleum-based fuels.
Brent’s climb above $100 started earlier in the week after the benchmark traded below that level throughout most of August. 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, with prices significantly higher than their early-August levels. Market dynamics continue to be influenced by crude supply, shipping disruptions, and physical flows as the global oil market approaches the latter half of September.