Global crude oil prices continued their upward movement on Friday, with Brent crude and US West Texas Intermediate (WTI) trading above the $100 per barrel mark as rising tensions in the Middle East increased concerns over supply disruptions.
After touching the $110 mark, Brent crude was trading near $107.70 a barrel, while WTI was around $102.50. Both benchmarks gained more than 6% on Thursday, pushing their weekly rise close to 13%. The contracts were headed towards their first weekly settlement above $100 since mid-May.
Supply disruptions fuel crude price surge
The recent rally has been driven by growing uncertainty over oil transportation routes. Iran-backed Houthi forces taking control of Yemen’s Mocha port added to concerns over movement through the Red Sea, while tanker activity in the Strait of Hormuz remained restricted due to increasing attacks on shipping vessels.
The impact of the conflict has extended beyond crude exports. US diesel prices crossed $6 per gallon, while attacks on Russian refineries further tightened fuel availability in international markets.
China demand and OPEC production influence outlook
Market participants are closely monitoring China’s crude buying patterns, which could determine the next phase of oil price movements.
The world’s largest crude importer has increased purchases after a period of weaker demand. Continued buying from China could further support prices, while a slowdown may ease pressure on global markets.
Meanwhile, OPEC has reduced its forecast for global oil demand growth in 2026 to 380,000 barrels per day, marking the fifth consecutive downward revision. The organisation’s crude production also declined by nearly 640,000 barrels per day in August.
Adding to supply concerns, US crude inventories fell by 391,000 barrels last week to 424.1 million barrels.
With geopolitical tensions continuing to affect major energy corridors and supply conditions remaining uncertain, traders are watching developments in the Middle East, production trends and demand signals from major economies for further direction in crude markets.
