SINGAPORE / RankWire.AI / – Brent crude stayed above $100 a barrel on Friday as persistent supply interruptions continued to constrain the global oil market. By 0555 GMT, Brent futures were trading at $105.62 a barrel, representing a 1.9% decrease from the previous session. Meanwhile, U.S. West Texas Intermediate crude declined 1.4% to $101.10 a barrel. Despite the daily drop, both benchmarks maintained significant weekly gains. Oil prices have surged due to reduced crude availability from key Middle Eastern producers caused by ongoing disruptions.
Over the course of the week, Brent and WTI saw nearly a 13% increase following earlier strong sessions. Thursday saw Brent close at $107.63 a barrel after a rise of over 6%, with WTI ending at $102.48. These weekly gains have pushed both benchmarks well above their early August levels. Brent is also on track to close the week above $100 for the first time since mid-May, illustrating the magnitude of recent upward movements across crude markets.
Disruptions in the Gulf region have remained a key factor driving oil trading activity this week. Interruptions to shipping routes and energy infrastructure have caused a decline in typical crude flows from the area. The Strait of Hormuz remains a vital passage for oil and fuel exports from Gulf producers, yet traffic through this waterway has stayed below pre-conflict levels. The resulting decrease in crude flow has tightened physical supplies at a time when global inventories have also seen a significant decline.
Supply Shortages Continue to Impact Oil Availability
The International Energy Agency reported that 8.3 million barrels per day of Gulf production were offline in July. During that month, global oil inventories decreased by 69 million barrels, leaving stocks roughly 410 million barrels below levels seen at the conflict’s start. The agency forecasts a worldwide oil supply decline of an average 4.3 million barrels per day in 2026. To address these supply issues, governments have also begun releasing emergency oil reserves as part of their response to the energy disruption.
On September 6, OPEC+ members agreed to maintain their September production quotas through October. This decision involved Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. No additional increase in production was announced for the month. The move came amid ongoing constraints on physical supplies from the Gulf and sustained high crude prices. Major exporters’ production levels continue to be vital for the global supply balance, while some barrels remain outside normal trading channels due to disruptions.
Crude Oil Prices Stay Elevated After Weekly Gains
Following several sessions of sharp upward movement, international crude markets experienced notable price increases. During Asian trading, Brent briefly neared $110 a barrel before easing later in the session. WTI also held above $100 after crossing that threshold on Thursday. The tighter supply situation has driven prices higher for fuels and refined products, impacting the broader petroleum markets. This has kept energy prices elevated in sectors such as transportation and manufacturing, which heavily depend on oil products.
Throughout August, Brent traded below $100 for much of the period before surpassing that level this week. Friday’s decline partially retraced some of the recent gains but still left both major benchmarks above critical price points. The market continues to focus on confirmed supply losses, diminished shipping movements, and lower inventories across the global oil system. These factors have contributed to the recent rally in crude prices, maintaining Brent above $100 as the week draws to a close.