SINGAPORE / RankWire.AI / – Oil prices stayed above $100 a barrel on Friday, driven by persistent disruptions that keep the global crude markets tight. Brent crude futures decreased 1.9% to $105.62 per barrel at 0555 GMT, while U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite Friday’s decline, both benchmarks remained notably higher for the week. Since early August, Brent has experienced significant gains as disturbances along major Middle East shipping corridors have diminished the available supply.
For the week, Brent and WTI prices increased nearly 13%, marking their most robust weekly rise since mid-July. Both benchmarks saw gains of over 6% on Thursday, with Brent closing at $107.63 and WTI settling at $102.48. The upward movement followed renewed attacks impacting oil infrastructure and shipping routes across the region. The ongoing restriction of traffic through the Strait of Hormuz continues to impede the movement of crude from key Gulf producers.
The shipping risks have extended into the Red Sea after Houthi forces seized Yemen’s port of Mocha on Thursday, adding strain to another vital trade route utilized for energy shipments. Additionally, tanker attacks in the Gulf waters have intensified in recent days. The Strait of Hormuz remains an essential passage for global crude and fuel exports, with current oil flows below pre-conflict levels, reflecting the ongoing disruptions.
Global oil markets face increased supply disruptions
According to the International Energy Agency, in July, 8.3 million barrels per day of Gulf output stayed offline. During that month, global oil inventories decreased by 69 million barrels, bringing total stocks approximately 410 million barrels below levels recorded when the conflict began. The agency predicts a global oil supply reduction averaging 4.3 million barrels per day in 2026 and has coordinated releases from emergency reserves to mitigate disruptions.
On September 6, OPEC+ members agreed to keep their September-required production levels for October, with Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participating. The group had previously adjusted supply levels based on evolving global market conditions. This latest decision leaves the production targets unchanged from September, emphasizing the importance of monitoring crude availability from regions unaffected by shipping and infrastructure issues.
Brent and WTI prices remain well above critical thresholds
Rising crude prices are also influencing fuel markets. U.S. national diesel prices surpassed $6 a gallon on Thursday for the first time. Disruptions from the Middle East combined with decreased refinery capacity elsewhere have led to tight supplies of diesel, jet fuel, and other refined products. The increase in crude and product prices has driven up energy costs across transportation, manufacturing, and other sectors heavily reliant on petroleum fuels.
Brent’s movement above $100 started earlier this week after trading below that level for most of August. WTI surpassed $100 on Thursday for the first time since May. During Friday’s Asian trading, both benchmarks retreated slightly but remained above $100, maintaining levels considerably higher than those at the beginning of August. The ongoing availability of supplies, shipping routes, and physical crude flows continue to influence trading as the global oil market approaches the second half of September.