SINGAPORE / RankWire.AI / – Oil prices stayed above $100 a barrel on Friday, driven by persistent disruptions in supply that continue to keep global crude markets constrained. Brent crude futures decreased by 1.9% to $105.62 a barrel by 0555 GMT, while U.S. West Texas Intermediate crude slipped 1.4% to $101.10. Despite Friday’s decline, both benchmarks maintained significant gains for the week. Since early August, Brent has experienced substantial growth amid disruptions along key Middle East shipping routes that have reduced available supply.
For the week, Brent and WTI recorded nearly a 13% increase, their strongest weekly rise since mid-July. Both benchmarks climbed over 6% on Thursday, with Brent settling at $107.63 and WTI at $102.48. The price movements followed renewed attacks impacting regional oil infrastructure and shipping lanes. Ongoing restrictions on traffic through the Strait of Hormuz continue to limit crude exports 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, adding further pressure along another vital trade corridor used for energy shipments. Attacks on tankers have also intensified in recent days around Gulf waters. The Strait of Hormuz remains a crucial route for worldwide crude and fuel exports, with oil flows through the strait remaining below pre-conflict levels.
Supply interruptions intensify the global oil market
International Energy Agency reported that 8.3 million barrels per day of Gulf output were still offline in July. Additionally, global oil inventories shrank by 69 million barrels during that period. Overall, inventories are approximately 410 million barrels lower than at the start of the conflict. The agency forecasts a global oil supply decline averaging 4.3 million barrels per day in 2026 and has coordinated releases from emergency reserves to mitigate disruptions.
On September 6, OPEC+ producers agreed to keep their September production quotas unchanged for October, with Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participating in the decision. The group previously adjusted output levels in response to shifting market conditions. This latest decision maintains current production targets for October, emphasizing the importance of available crude supplies from outside the disrupted shipping routes as traders monitor the evolving market conditions.
Crude prices remain elevated above critical benchmarks
Rising crude prices have also influenced fuel markets. U.S. national diesel prices surpassed $6 a gallon on Thursday for the first time, driven by supply deficits from the Middle East and reduced refinery capacity in other regions. The tight conditions have affected diesel, jet fuel, and other refined products. As crude and product prices increase, energy costs for transportation, manufacturing, and other sectors reliant on petroleum-based fuels have risen.
Brent’s move above $100 began earlier this week after trading below that level for much of August. WTI crossed the $100 mark on Thursday for the first time since May. Despite a slight pullback on Friday, both benchmarks remained above that threshold during Asian trading. Current prices are significantly higher than early-August levels, with ongoing supply limitations, shipping constraints, and physical crude flows continuing to influence trading as the global oil market moves into the second half of September.