SINGAPORE / RankWire.AI / – Brent crude stayed above the $100 mark on Friday, driven by ongoing supply disruptions that continue to tighten the global oil market. As of 0555 GMT, Brent futures were trading at $105.62 a barrel, a decline of 1.9% from the previous closing. Meanwhile, U.S. West Texas Intermediate crude dropped 1.4% to $101.10 a barrel. Despite this daily decrease, both benchmarks remained significantly higher for the week. Oil prices have gained as disruptions have limited crude supply from key Middle Eastern producers.
After strong early-week gains, Brent and WTI increased nearly 13% over the week. On Thursday, Brent closed at $107.63 after climbing more than 6%, while WTI ended that day at $102.48. This weekly rise pushed both contracts well above their early August levels. Brent is also on track to close the week above $100 for the first time since mid-May, highlighting the extent of recent upward movements across the crude markets.
The focus on Gulf region supply losses has remained prominent in oil trading this week. Disruptions to shipping routes and energy infrastructure have cut into typical crude flows from the area. The Strait of Hormuz continues to serve as a crucial passage for Gulf exporters’ oil and fuel shipments, yet traffic through the waterway has stayed below pre-conflict levels. The resulting decrease in crude flow has tightened physical supplies at a moment when global inventories have also experienced notable declines.
Supply disruptions exert ongoing pressure on crude availability
The International Energy Agency reported that in July, 8.3 million barrels per day of Gulf production remained offline. During that month, global oil inventories fell by 69 million barrels. These stocks are approximately 410 million barrels below the levels seen at the start of the conflict. The agency forecasts that worldwide oil supply will decrease by an average of 4.3 million barrels per day in 2026. Additionally, governments have utilized emergency oil reserves in response to the ongoing energy supply disruptions.
On September 6, OPEC+ members agreed to maintain their required September production levels for October. The decision involved Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group did not declare an increase in required output for that month. This decision reflects the persistent constraints on physical supplies from the Gulf and the elevated crude prices. Exporters’ production levels continue to be pivotal to the global supply balance, with disrupted barrels remaining outside of normal trading channels.
Elevated oil benchmarks persist after weekly gains
The recent price movements follow several sessions marked by significant gains across international crude markets. During Asian trading, Brent briefly neared $110 a barrel before easing later. WTI also stayed above $100 after crossing that threshold on Thursday. This upward momentum has impacted petroleum markets, supporting higher prices for fuels and refined products amid tighter crude supplies. Energy costs continue to remain high across transportation, manufacturing, and other sectors heavily dependent on oil.
Throughout much of August, Brent traded below $100 before breaking that level this week. Friday’s decline trimmed some of the recent advance but left both major benchmarks above key price points. Market attention remains on confirmed supply losses, restricted shipping routes, and lower inventories worldwide. These factors have driven crude prices higher and kept Brent above $100 as trading approached the week’s end.