SINGAPORE / RankWire.AI / – Oil prices stayed above $100 a barrel on Friday due to ongoing supply issues that have kept the global crude market constrained. Brent crude futures declined 1.9% to reach $105.62 a barrel by 0555 GMT. Meanwhile, U.S. West Texas Intermediate crude decreased by 1.4% to $101.10. Despite Friday’s decline, both benchmarks remained significantly higher for the week. Since early August, Brent has experienced substantial gains as disruptions along key Middle East shipping lanes have reduced the available supply.
Both Brent and WTI saw weekly increases of nearly 13%, marking their most robust weekly rise since mid-July. On Thursday, both benchmarks gained over 6%. Brent settled at $107.63 that day, while WTI ended at $102.48. These movements followed renewed attacks targeting oil infrastructure and shipping routes across the region. The ongoing restriction of traffic through the Strait of Hormuz continues to limit crude exports from major Gulf producers.
The threat to shipping routes has also expanded into the Red Sea after Houthi forces took control of Yemen’s port of Mocha on Thursday. This development added further pressure to another significant trade corridor used for energy shipments. Additionally, tanker attacks in the Gulf waters have intensified in recent days. The Strait of Hormuz remains a vital passage for global crude and fuel exports, but oil flows through this route are still below pre-conflict levels.
Supply Disruptions Continue to Tighten the Global Oil Market
The International Energy Agency reported that 8.3 million barrels per day of Gulf output were offline in July. Additionally, global oil inventories decreased by 69 million barrels during the same month. Overall, inventories are approximately 410 million barrels below the levels recorded when the conflict began. The agency projects that global oil supply will decrease by an average of 4.3 million barrels per day in 2026. During this period, emergency oil reserves have also been released to help mitigate supply disruptions.
On September 6, OPEC+ producers agreed to keep their September required production levels steady for October. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participated in this decision. The group had previously adjusted output as members reassessed the changing global market conditions. The latest agreement maintains October’s production at September levels. This framework remains crucial as traders monitor available crude supplies from regions unaffected by shipping and infrastructure issues.
Brent and WTI Prices Remain Elevated Above Critical Thresholds
Rising crude prices have also influenced fuel markets. U.S. national diesel prices surpassed $6 a gallon on Thursday for the first time. Supply shortages stemming from the Middle East, combined with reduced refinery capacity elsewhere, have caused tight conditions for diesel, jet fuel, and other refined products. The surge in crude and product prices has driven up energy costs in transportation, manufacturing, and sectors heavily reliant on petroleum-based fuels.
Brent’s ascent past $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. On Friday, both benchmarks pulled back but remained above $100 during Asian trading. Current prices are significantly higher than their early-August levels. Market dynamics such as supply availability, shipping access, and physical crude flows continue to influence trading as the global oil market moves into the latter part of September.