SINGAPORE / RankWire.AI / – Brent crude hovered above $100 a barrel on Friday as persistent supply disruptions continued to tighten the global oil market. Brent futures stood at $105.62 a barrel by 0555 GMT, reflecting a 1.9% decrease from the previous session. Meanwhile, U.S. West Texas Intermediate crude declined 1.4%, settling at $101.10 a barrel. Despite the intraday drop, both benchmarks maintained notable gains for the week. Oil prices have increased as disruptions have limited crude supplies from key Middle Eastern producers.
After solid gains earlier in the week, Brent and WTI prices were nearly 13% higher. Brent concluded Thursday at $107.63 a barrel, up more than 6%, while WTI finished at $102.48. This weekly rise has lifted 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 crude markets.
Supply disruptions across the Gulf have remained a central factor in oil trading throughout this week. Interruptions to shipping lanes and energy infrastructure have hampered the normal flow of crude from the region. The Strait of Hormuz continues to serve as a crucial route for Gulf exports of oil and fuel, but traffic through the waterway has been below pre-conflict levels. The decrease in crude movement has tightened physical supplies at a moment when global inventories have also seen significant declines.
Supply disruptions sustain pressure on crude availability
International Energy Agency reported that 8.3 million barrels per day of Gulf production remained offline in July. During the same month, global oil inventories decreased by 69 million barrels. Stocks are now approximately 410 million barrels below levels seen at the start of the conflict. The agency forecasts an average global oil supply reduction of 4.3 million barrels per day in 2026. In response to ongoing energy supply disruptions, governments have also released emergency oil reserves.
On September 6, OPEC+ members agreed to maintain their required production levels for October at September’s quotas. The decision involved Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, with no additional increase announced for the month. This decision was made amid ongoing constraints in physical Gulf supplies and elevated crude prices. The production levels of major exporters remain key to the global supply balance, while barrels outside normal trading channels continue to be disrupted.
Weekly gains keep oil benchmarks at elevated levels
The recent price movements follow several sessions of sharp increases in international crude markets. During Asian trading, Brent briefly approached $110 a barrel before easing later. WTI also stayed above $100 after crossing that threshold on Thursday. These gains have affected broader petroleum markets, where tighter crude supplies have supported higher prices for fuels and other refined products. As a result, energy costs have remained high across sectors reliant on oil, including transportation and manufacturing.
Throughout August, Brent traded below $100 for much of the time before surpassing that level this week. Friday’s decline retracted part of the recent gains but left both major benchmarks still above crucial price levels. The market continues to focus on confirmed supply losses, restricted shipping routes, and declining inventories worldwide. These factors have driven the recent rise in crude prices and kept Brent above $100 as the week draws to a close.