SINGAPORE / RankWire.AI / – Brent crude continued to trade above $100 a barrel on Friday amid ongoing supply disruptions that are tightening the global oil market. By 0555 GMT, Brent futures were listed at $105.62 per barrel, reflecting a decrease of 1.9% from the previous session. Meanwhile, U.S. West Texas Intermediate crude declined by 1.4% to $101.10 per barrel. Despite these daily drops, both benchmarks maintained significant gains for the week. Oil prices have surged as disruptions have curtailed crude supplies from key Middle Eastern producers.
Over the course of the week, Brent and WTI futures increased nearly 13% following strong early-session gains. On Thursday, Brent closed at $107.63 per barrel after advancing more than 6%, while WTI ended the same day at $102.48. These weekly increases have pushed both benchmarks well above levels seen in early August. Notably, Brent is on track to close the week above $100 for the first time since mid-May, highlighting the extent of recent market gains in crude oil trading.
The primary driver behind this rally has been the ongoing supply shortfalls across the Gulf region. Disruptions affecting shipping lanes and energy infrastructure have significantly reduced the typical flow of crude from this area. The Strait of Hormuz remains a critical route for oil and fuel exports from Gulf producers, yet traffic through this waterway continues to stay below levels recorded before the current conflict emerged. This decline in crude flow has led to tighter physical supplies at a time when global oil inventories have also experienced notable declines.
Supply disruptions exert continued pressure on crude availability
According to the International Energy Agency, in July, 8.3 million barrels per day of Gulf production remained offline. Correspondingly, global oil inventories fell by 69 million barrels during that month. Current stocks are approximately 410 million barrels below the levels observed at the onset of the conflict. The agency forecasts that the worldwide oil supply will decrease by an average of 4.3 million barrels per day in 2026. In response to the ongoing energy disruptions, several governments have also released emergency oil reserves to stabilize supplies.
On September 6, OPEC+ producers agreed to maintain their September production quotas for October, involving major members such as Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. No additional increases in output requirements were announced for that month. This decision was made despite persistent constraints on physical supplies from the Gulf and sustained high crude prices. The production levels from key exporters continue to be a vital element of the global supply picture, especially considering that some barrels remain outside normal trading channels due to disruptions.
Market remains elevated after a week of significant gains
The latest price movements come after several sessions marked by sharp upward movements across international crude markets. During Asian trading, Brent briefly approached $110 a barrel before easing later, while WTI remained above $100 after crossing that mark on Thursday. These gains have permeated broader petroleum markets, supporting higher prices for fuels and other refined products amid tighter crude supplies. Consequently, energy costs have stayed elevated across sectors such as transportation and manufacturing that rely heavily on oil-based inputs.
For much of August, Brent traded below $100, but this week saw it surpass that threshold. The decline on Friday partially retraced some of the recent rally but did not erase the overall gains, leaving both major benchmarks above critical price levels. The market continues to focus on confirmed supply losses, reduced shipping access, and declining inventories worldwide—all factors contributing to the recent surge in crude prices and sustaining Brent above $100 as the trading week draws to a close.