SINGAPORE / RankWire.AI / – Oil prices stayed above $100 per barrel on Friday amid ongoing supply disruptions that keep the global crude market tight. Brent crude futures declined by 1.9% to $105.62 a barrel at 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 a strong rally as disruptions along key Middle East shipping lanes diminished the available supply.
Over the course of the week, Brent and WTI surged nearly 13%, marking their most substantial weekly increase since mid-July. Both benchmarks gained more than 6% on Thursday, with Brent closing at $107.63 and WTI settling at $102.48. These price movements followed renewed attacks that targeted regional oil infrastructure and shipping routes. Ongoing restrictions through the Strait of Hormuz continue to limit crude oil exports from major Gulf producers.
The risks to shipping routes extended into the Red Sea after Houthi forces seized control of Yemen’s port of Mocha on Thursday. This development exerted additional pressure on another crucial trade corridor used for energy shipments. Attacks on tankers in the Gulf waters have also increased recently. The Strait of Hormuz remains vital for global crude and fuel exports, yet oil flows through the waterway are still below pre-conflict levels, reflecting ongoing disruptions.
Supply disruptions deepen pressure on the global oil market
According to the International Energy Agency, 8.3 million barrels per day of Gulf production was offline in July. Additionally, global oil inventories decreased by 69 million barrels during that period. Total inventories are now approximately 410 million barrels lower than at the start of the conflict. The agency forecasts a decline in global oil supply averaging 4.3 million barrels per day in 2026, and it has coordinated emergency oil reserve releases amid the ongoing disruptions.
On September 6, OPEC+ producers agreed to sustain their September required production levels for October, with Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participating in the decision. The group previously adjusted supply strategies in response to shifting global market conditions. The latest agreement keeps October’s production targets consistent with September, emphasizing the importance of this framework as traders monitor crude supplies outside the regions affected by shipping and infrastructure issues.
Brent and WTI maintain prices well above critical thresholds
Rising crude prices have also influenced fuel markets. U.S. national diesel prices surpassed $6 per gallon on Thursday for the first time. This increase results from supply shortages caused by Middle East disruptions and reduced refinery operations elsewhere. Diesel, jet fuel, and other refined products are experiencing particularly tight supplies. The escalation in crude and product prices has driven up energy costs across transportation, manufacturing, and other sectors heavily reliant on petroleum fuels.
Brent’s move above $100 began earlier in the week after trading below that level for most of August. WTI crossed the $100 mark on Thursday for the first time since May. Although Friday’s decline brought both benchmarks below that level during Asian trading, their prices remain significantly higher than in early August. Market dynamics continue to be shaped by supply availability, shipping access, and physical crude flows as the global oil market approaches mid-September’s end.