SINGAPORE / RankWire.AI / – Oil prices held above $100 a barrel on Friday, driven by ongoing supply disruptions that continue to tighten the worldwide crude markets. Brent crude futures declined 1.9% to $105.62 a barrel at 0555 GMT, while U.S. West Texas Intermediate crude dropped 1.4% to $101.10. Despite Friday’s decline, both benchmarks maintained significant weekly gains. Since early August, Brent has experienced a strong increase, largely due to disturbances along key Middle East shipping corridors that have reduced the available supply.
For the week, Brent and WTI rose nearly 13%, marking their most substantial weekly rise since mid-July. Both benchmarks surged more than 6% on Thursday, with Brent closing at $107.63 and WTI at $102.48. These movements followed renewed attacks on regional oil infrastructure and shipping routes, exacerbating supply concerns. Persistent restrictions on traffic through the Strait of Hormuz continue to hinder crude shipments from major Gulf producers.
The shipping risks have extended into the Red Sea after Houthi forces seized control of Yemen’s port of Mocha on Thursday. This escalation added to the strain on another critical trade route for energy shipments. Additionally, tanker attacks near Gulf waters have intensified recently. The Strait of Hormuz remains a vital conduit for the world’s crude and fuel exports, though current flows are below pre-conflict levels.
Supply disruptions push global oil markets toward tighter conditions
The International Energy Agency reported that 8.3 million barrels per day of Gulf output remained offline in July, with global oil inventories decreasing by 69 million barrels during that month. The total inventory deficit compared to pre-conflict levels is approximately 410 million barrels. The agency projects that worldwide oil supply will decline by an average of 4.3 million barrels per day in 2026. During the disruptions, coordinated releases from emergency reserves were also implemented to stabilize markets.
On September 6, OPEC+ producers agreed to uphold their September-required production levels for October, with participation from Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group had previously adjusted supply targets as they assessed shifting global market conditions. The latest decision keeps October’s required output aligned with September, emphasizing the importance of these levels as traders closely monitor crude availability from regions unaffected by shipping and infrastructure disruptions.
Brent and WTI continue to trade well above critical thresholds
Rising crude prices have also influenced fuel markets, with U.S. diesel prices surpassing $6 a gallon on Thursday for the first time. Supply shortages stemming from Middle East disruptions, combined with reduced refinery capacity in other regions, have tightened the markets for diesel, jet fuel, and other refined products. Consequently, energy costs across transportation, manufacturing, and related sectors that rely heavily on petroleum-based fuels have increased.
Brent’s ascent past $100 started earlier in the week, after trading below that level for much of August. WTI crossed the $100 mark on Thursday, marking its first time since May. On Friday, despite a slight pullback, both benchmarks remained above that threshold during Asian trading. The current prices are significantly higher than those seen in early August. Market activity continues to be shaped by supply conditions, shipping access, and physical crude flows as the global oil sector moves into the latter half of September.