SINGAPORE / RankWire.AI / – Brent crude continued to trade above the $100 mark on Friday amid ongoing supply interruptions that are tightening the global oil market. As of 0555 GMT, Brent futures were at $105.62 a barrel, reflecting a 1.9% decrease from the previous closing price. Meanwhile, U.S. West Texas Intermediate crude declined 1.4% to $101.10 a barrel. Despite these daily drops, both benchmarks maintained substantial gains for the week. Oil prices have surged due to reduced crude supplies from key Middle Eastern producers caused by disruptions.
For the week, Brent and WTI experienced nearly a 13% increase following strong upward movements earlier in the session. Brent ended Thursday at $107.63 a barrel after rising over 6%, while WTI closed at $102.48. These weekly gains have pushed both contracts well above the levels seen in early August. Brent is also on track to close the week above $100 for the first time since mid-May, highlighting the recent momentum in crude markets.
Supply disruptions across the Gulf region have remained a significant factor influencing oil trading this week. Interruptions to shipping routes and energy infrastructure have diminished normal crude flows from the area. The Strait of Hormuz continues to serve as a crucial passage for oil and fuel exports from Gulf producers. Traffic in this waterway remains below pre-conflict levels, leading to tighter physical supplies at a moment when global inventories have also declined significantly.
Persistent Supply Losses Exert Pressure on Crude Oil Availability
According to the International Energy Agency, Gulf production of 8.3 million barrels per day was offline in July, contributing to a 69-million-barrel reduction in global oil inventories during that month. Stocks now sit approximately 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. In response to the disruptions, governments have also released emergency oil reserves to stabilize energy supplies.
On September 6, OPEC+ producers decided to keep their September production quotas unchanged for October, a group comprising Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. No additional output increases were announced for the upcoming month. This decision reflects ongoing constraints in physical supplies from the Gulf region and sustained high crude prices. Major exporters’ production levels remain vital to the global supply balance, while barrels outside normal trading channels continue to impact the market.
Crude Prices Stay Elevated Following a Weekly Rally
The recent price movements follow multiple sessions of significant gains across international crude markets. During Asian trading, Brent briefly neared $110 a barrel before easing later. WTI also stayed above $100 after surpassing that threshold on Thursday. These increases have affected the broader petroleum sector, where tighter crude supplies have supported higher prices for fuels and refined products. Consequently, energy costs across transportation, manufacturing, and other sectors heavily dependent on oil have remained high.
Throughout August, Brent traded below $100 for much of the time before crossing that mark this week. The decline on Friday reduced part of the recent rally but did not erase the overall gains, leaving both benchmarks above key psychological levels. The market continues to focus on confirmed supply disruptions, limited shipping access, and declining inventories globally, which have driven crude prices higher and kept Brent above $100 as the week concludes.