SINGAPORE / RankWire.AI / – Oil prices stayed above the $100 mark per barrel on Friday, supported by ongoing disruptions in supply that have kept global crude markets under tight pressure. Brent crude futures decreased by 1.9% to reach $105.62 a barrel at 0555 GMT. U.S. West Texas Intermediate crude also fell, dropping 1.4% to $101.10. Despite Friday’s decline, both benchmarks maintained significant weekly gains. Since early August, Brent has experienced a substantial rise, largely driven by disruptions across major Middle Eastern shipping routes that have curtailed available supply.
For the week, Brent and WTI advanced nearly 13%, marking their most robust weekly increase since mid-July. On Thursday, both benchmarks gained over 6%, with Brent closing at $107.63 and WTI at $102.48. These price movements came amid renewed attacks targeting oil infrastructure and shipping lanes throughout the region. The ongoing traffic restrictions through the Strait of Hormuz continue to limit crude exports from key Gulf producers.
The risks to shipping also extended to the Red Sea after Houthi forces seized control of Yemen’s port of Mocha on Thursday, adding further pressure to a vital trade corridor used for energy shipments. Additionally, attacks on tankers in the Gulf waters have intensified recently. The Strait of Hormuz remains a crucial route for global crude and fuel exports, although current flows are below levels seen before the current conflict escalated.
Supply Disruptions Intensify Global Oil Market Tightness
International Energy Agency reported that 8.3 million barrels per day of Gulf output were still offline in July. The agency also noted that global oil inventories decreased by 69 million barrels during that month, bringing total inventories roughly 410 million barrels below pre-conflict levels. The IEA forecasts that global oil supply will decline by an average of 4.3 million barrels per day in 2026. Emergency oil reserve releases have been coordinated during this period of disruption to help stabilize the market.
On September 6, OPEC+ producers agreed to keep their September-required production levels in place for October, with Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participating in the decision. This group had previously adjusted their output based on changing global market conditions. The latest agreement maintains October’s required production at September levels. This framework remains vital for traders, who continue to monitor crude supply levels outside the areas affected by shipping and infrastructure issues.
Brent and WTI Prices Remain Significantly Elevated
Higher crude prices have influenced fuel markets as well. U.S. diesel prices surpassed $6 a gallon on Thursday for the first time. The combination of Middle Eastern supply cuts and reduced refinery capacity elsewhere has led to tight supplies of diesel, jet fuel, and other refined products. The resulting surge in energy costs has impacted transportation, manufacturing, and other sectors heavily reliant on petroleum fuels.
Brent’s price surpassed the $100 mark earlier in the week after trading below that level for much of August. WTI crossed the $100 threshold on Thursday for the first time since May. Despite Friday’s slight retreat, both benchmarks remained above that level during Asian trading, and their prices are still well above early-August figures. As the second half of September unfolds, the market continues to be shaped by supply availability, shipping constraints, and physical crude flows.