SINGAPORE / RankWire.AI / – Oil prices continued to trade above $100 per barrel on Friday amid ongoing supply disruptions that keep global crude markets constrained. Brent crude futures declined by 1.9% to reach $105.62 a barrel at 0555 GMT, while U.S. West Texas Intermediate crude fell 1.4% to $101.10. Despite Friday’s dip, both benchmarks maintained notable gains for the week. Since early August, Brent has experienced significant appreciation, largely driven by disruptions along major Middle East shipping routes that have curtailed available supply.
For the week, Brent and WTI increased nearly 13%, marking their most robust weekly rise since mid-July. Both benchmarks surged over 6% on Thursday, with Brent closing at $107.63 and WTI at $102.48. These movements followed renewed attacks affecting regional oil infrastructure and shipping lanes. Restricted navigation through the Strait of Hormuz continued to hamper crude exports from leading Gulf producers.
Risks to maritime shipping have also extended into the Red Sea after Houthi forces took control of Yemen’s port of Mocha on Thursday, adding pressure to another crucial trade route utilized by energy shipments. In recent days, attacks on tankers in the Gulf waters have intensified, underscoring ongoing security concerns. The Strait of Hormuz remains a vital conduit for the export of crude and refined fuels worldwide. Nonetheless, oil flows through this waterway continue at levels below those seen prior to the current conflict escalation.
Supply Interruptions Limit Global Oil Availability
According to the International Energy Agency, Gulf output remained offline at 8.3 million barrels per day in July. During the same period, global oil inventories decreased by 69 million barrels, bringing total stocks about 410 million barrels below levels recorded at the onset of the conflict. The agency forecasts an average decline of 4.3 million barrels per day in global oil supply for 2026. Additionally, emergency releases from oil reserves have been coordinated to mitigate disruptions during this period.
On September 6, OPEC+ producers agreed to sustain their required production levels for October, maintaining the quotas set for September. Participants in this decision included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. Previously, the group had adjusted supply targets in response to changing global market conditions. The latest agreement leaves October’s required output unchanged from September, emphasizing the importance of the group’s production framework as traders monitor crude supplies from regions unaffected by shipping and infrastructure issues.
Brent and WTI Prices Remain Significantly Elevated
Elevated crude prices have also impacted fuel markets. U.S. diesel prices surpassed $6 a gallon on Thursday for the first time. Reduced refinery capacity outside the Middle East, combined with supply losses from the region, has led to particularly tight conditions for diesel, jet fuel, and other refined products. The resulting increase in crude and product prices has driven up energy costs across transportation, manufacturing, and other sectors heavily reliant on petroleum-based fuels.
Brent’s ascent above the $100 mark began earlier in the week after trading below that level for much of August. WTI crossed the $100 threshold on Thursday, marking its first time since May. On Friday, despite a slight pullback, both benchmarks traded above $100 during Asian markets. These latest prices are well above their early-August levels. As the global oil market moves into the second half of September, supply conditions, shipping access, and physical crude flows continue to influence trading activity.