SINGAPORE / RankWire.AI / – Oil prices maintained a position above $100 per barrel on Friday, driven by ongoing supply disruptions that have kept the global crude oil market tight. Brent crude futures declined 1.9% to reach $105.62 per barrel at 0555 GMT, while U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite Friday’s retreat, both benchmarks remained significantly higher for the week, supported by disruptions across key Middle East shipping lanes that have diminished available supply since early August.
The weekly gains for Brent and WTI approached nearly 13%, marking their strongest increase since mid-July. Both benchmarks experienced gains exceeding 6% on Thursday, with Brent closing at $107.63 and WTI at $102.48. These price movements followed renewed attacks targeting oil infrastructure and shipping routes in the region. Meanwhile, limited traffic through the Strait of Hormuz continues to restrict the flow of crude from major Gulf producers.
The threat to shipping routes has extended into the Red Sea after Houthi forces seized control of Yemen’s port of Mocha on Thursday. This escalation adds further pressure on another vital trade corridor used for energy shipments. Additionally, attacks on tankers have intensified in the Gulf waters in recent days. The Strait of Hormuz remains a crucial conduit for global crude and fuel exports, although oil flows through it are currently below pre-conflict levels.
Supply disruptions intensify the global oil market’s tightness
The International Energy Agency reported that in July, 8.3 million barrels per day of Gulf output remained offline. During the same month, global oil inventories decreased by 69 million barrels, bringing total stocks approximately 410 million barrels below levels seen when the conflict started. The agency predicts a global oil supply reduction averaging 4.3 million barrels daily in 2026, while also coordinating emergency releases from oil reserves to mitigate disruptions.
On September 6, OPEC+ producers agreed to keep their required production levels for October at the same level as September. This group includes Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, who had previously made adjustments based on evolving global market conditions. Their latest decision ensures October’s production quotas remain unchanged from September, highlighting the importance of available crude supplies outside areas affected by shipping and infrastructure disruptions as traders monitor market conditions entering the second half of September.
Brent and WTI remain well above critical price thresholds
Elevated crude prices have had ripple effects in fuel markets, with U.S. national diesel prices surpassing $6 a gallon on Thursday for the first time. The combination of Middle East supply losses and reduced refinery capacity elsewhere has created tight supplies for diesel, jet fuel, and other refined products. This surge in crude and product prices has driven up energy costs across transportation, manufacturing, and other sectors heavily reliant on petroleum-based fuels.
Brent’s rise above $100 began earlier in the week after trading below that level for much of August. WTI crossed the $100 mark on Thursday for the first time since May. Friday’s slight pullback still left both benchmarks above that threshold during Asian trading. The current prices remain significantly higher than those seen in early August. As the global oil market moves into the latter part of September, supply availability, shipping routes, and physical crude flows continue to influence trading dynamics.