SINGAPORE / RankWire.AI / – Oil prices stayed above $100 per barrel on Friday, reflecting ongoing tightness in the worldwide crude supply caused by disruptions. Brent crude futures decreased by 1.9% to $105.62 a barrel as of 0555 GMT, while U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite Friday’s retreat, both benchmarks finished the week significantly higher, with Brent rallying since early August due to disturbances along major Middle East shipping lanes limiting available supply.
Over the course of the week, Brent and WTI increased nearly 13%, their strongest weekly gains since mid-July, with both benchmarks rising over 6% on Thursday. Brent closed that day at $107.63, and WTI ended at $102.48. These movements followed renewed attacks targeting oil infrastructure and shipping routes in the region. Limited traffic through the Strait of Hormuz persisted, restricting crude exports from key Gulf producers.
Threats to shipping extended into the Red Sea after Houthi forces seized control of Yemen’s port of Mocha on Thursday, adding pressure to another vital trade route used for energy shipments. Recently, attacks on tankers have also intensified in the Gulf waters. The Strait of Hormuz remains essential for global crude and fuel exports, though oil flows through the passage remain below pre-conflict levels.
Supply disruptions intensify global oil market pressure
According to the International Energy Agency, in July, 8.3 million barrels per day of Gulf production was offline. During the same period, global oil inventories decreased by 69 million barrels, leaving total stocks roughly 410 million barrels below levels from the start of the conflict. The agency forecasts an average decline of 4.3 million barrels per day in global oil supply for 2026, and has coordinated emergency releases from strategic reserves during these supply disruptions.
On September 6, OPEC+ members agreed to keep their September production levels fixed for October, with Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participating. The group previously adjusted output in response to evolving market conditions. This latest decision maintains October’s required production at September’s levels, as traders continue to monitor crude availability outside regions affected by shipping and infrastructure issues.
Crude prices remain robust above critical thresholds
The rise in crude prices has also impacted fuel markets. U.S. diesel prices surpassed $6 a gallon on Thursday for the first time. Supply shortages from the Middle East, coupled with decreased refinery activity elsewhere, have caused tight conditions for diesel, jet fuel, and other refined products. The escalation in crude and product costs has driven up energy expenses across transportation, manufacturing, and other sectors reliant on petroleum fuels.
Brent’s ascent past $100 began earlier in the week after trading below that level for much of August. WTI also crossed $100 on Thursday, marking its first time above that mark since May. During Asian trading on Friday, both benchmarks retreated slightly but still remained above $100, well above their early-August levels. As the global oil market enters mid-September, factors such as supply availability, shipping disruptions, and physical crude flows continue to influence trading dynamics.