SINGAPORE / RankWire.AI / – Oil prices maintained a position above $100 per barrel on Friday amid ongoing disruptions in supply that continue to tighten the worldwide crude oil markets. Brent crude futures decreased by 1.9% to $105.62 a barrel as of 0555 GMT. Meanwhile, U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite Friday’s decline, both benchmarks have experienced significant gains over the week. Brent has surged since early August due to disturbances along key Middle Eastern shipping routes, which have curtailed the available supply.
For the week, Brent and WTI increased by nearly 13%, marking their most robust weekly rise since mid-July. Both benchmarks gained more than 6% on Thursday. Brent settled at $107.63, while WTI ended at $102.48. These upward movements followed renewed attacks impacting oil infrastructure and shipping lanes across the region. The ongoing restrictions on traffic through the Strait of Hormuz continue to hinder crude shipments from leading Gulf producers.
The threat to shipping routes has also extended into the Red Sea after Houthi forces seized control of Yemen’s port of Mocha on Thursday. This event added further strain to another vital trade corridor used for energy shipments. In addition, recent days have seen an increase in tanker attacks around Gulf waters. The Strait of Hormuz remains a crucial passage for global crude and fuel exports, yet oil flows through the waterway remain below pre-conflict levels.
Disruptions in supply continue to tighten the global oil market
The International Energy Agency reported that in July, 8.3 million barrels per day of Gulf production was offline. Additionally, global oil inventories declined by 69 million barrels during that month, bringing total stocks to roughly 410 million barrels below the levels recorded when the conflict started. The agency forecasts that worldwide oil supply will decrease by an average of 4.3 million barrels per day in 2026. During the disruptions, coordinated releases from emergency oil reserves have been implemented to stabilize markets.
On September 6, OPEC+ producers agreed to keep their September required production levels unchanged for October. The decision was made with participation from Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman. The group had previously adjusted their supply targets based on evolving global market conditions. The latest agreement maintains October production at September levels, underscoring the importance of the supply framework as traders monitor crude availability outside areas affected by shipping and infrastructure issues.
Both Brent and WTI Prices Continue to Stay Well Above $100
Rising crude oil prices are also influencing fuel markets. For the first time, U.S. national diesel prices exceeded $6 a gallon on Thursday. The combined effects of Middle Eastern supply disruptions and reduced refinery capacity in other regions have led to tight supplies of diesel, jet fuel, and other refined products. As a result, energy costs across transportation, manufacturing, and other energy-intensive industries have increased due to higher crude and product prices.
Brent’s ascent past $100 began earlier in the week after trading below that level for much of August. WTI crossed the $100 mark on Thursday for the first time since May. Although Friday’s retreat pulled both benchmarks slightly back, they still remained above that threshold during Asian trading. The prices currently are well above their early-August levels. As the global oil market moves into the latter part of September, factors such as supply, shipping access, and physical crude flows continue to influence trading dynamics.