SINGAPORE / RankWire.AI / – Oil prices held above the $100 mark on Friday amid ongoing disruptions that continue to tighten the supply of crude worldwide. Brent crude futures decreased by 1.9%, reaching $105.62 a barrel at 0555 GMT. Meanwhile, U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite Friday’s pullback, both benchmarks remained significantly higher for the week, buoyed by recent disruptions since early August that have affected key Middle East shipping lanes and reduced available supply.
Both Brent and WTI experienced weekly gains of nearly 13%, their strongest since mid-July. On Thursday, both benchmarks surged more than 6%, with Brent closing at $107.63 and WTI at $102.48. These movements followed renewed attacks on regional oil infrastructure and shipping routes, with restricted traffic through the Strait of Hormuz continuing to hinder the flow of crude from major Gulf producers.
The threat to shipping routes extended into the Red Sea after Houthi forces took control of Yemen’s port of Mocha on Thursday, adding further pressure to an already strained trade corridor. In recent days, attacks on tankers in the Gulf waters have also intensified. The Strait of Hormuz remains a vital passage for global crude and fuel exports, though oil shipments through this waterway are still below pre-conflict levels.
Supply disruptions intensify the global oil shortage
According to the International Energy Agency, in July, 8.3 million barrels per day of Gulf output remained offline. Additionally, global oil inventories decreased by 69 million barrels during that month, bringing total stockpiles approximately 410 million barrels below levels recorded at the onset of the conflict. The agency predicts that the worldwide oil supply will decrease by an average of 4.3 million barrels per day in 2026, and it has coordinated releases from emergency reserves to mitigate the disruption.
On September 6, OPEC+ producers agreed to sustain their September production levels for October, with Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participating in the decision. Having previously adjusted supply in response to shifting market conditions, the group opted to keep October’s required production unchanged from September. This framework remains crucial as traders closely observe available crude supplies outside of the areas facing ongoing shipping and infrastructure issues.
Crude oil prices remain well above key thresholds, impacting markets
The rise in crude prices has also influenced fuel markets, with U.S. national diesel prices surpassing $6 a gallon on Thursday for the first time. The combined effect of Middle East supply losses and diminished refinery capacity elsewhere has led to tight conditions for 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 that rely heavily on petroleum-based fuels.
Brent’s ascent above $100 began earlier in the week, after trading below that level for much of August. WTI crossed the $100 mark on Thursday, marking the first time since May. Friday’s decline still left both benchmarks above that level during Asian trading. Current prices remain significantly higher than those in early August. As the global oil market moves into the latter half of September, factors such as supply availability, shipping access, and physical crude flows continue to influence trading activity.