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US Oil Update: Oil Posts Weekly Gains on Supply Concerns

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Oil benchmarks stabilized on Friday but rose sharply over the week after the collapse of the US-Iran ceasefire once again slowed shipping traffic through the Strait of Hormuz.

Front-month West Texas Intermediate crude futures were steady at $72.12 per barrel, while Brent futures added 0.3% to $76.50/bbl.

WTI futures gained about 4.9% on a weekly basis while Brent gained nearly 6% so far this week.

Saxo Bank analysts said that "traders priced in a contained US-Iran conflict and expected energy shipments through the Strait of Hormuz to recover."

The Joint Maritime Information Center confirmed on Friday that the prevailing threat level to maritime security in the Strait of Hormuz remains "severe."

Technical-level talks between Washington and Tehran are ongoing, but shipping traffic through the waterway is minimal, with analysts reporting a near-complete absence of large, commodity-laden vessels.

Because roughly one-fifth of global crude supplies transit this narrow bottleneck, market participants remain hyper-focused on the possibility of prolonged maritime blockades and price volatility.

The renewed supply crunch is playing out against shifting macroeconomic fundamentals. On Friday, the International Energy Agency reported that seasonal trends and a broad rebound in fuel supplies are lift global consumption again.

While the IEA forecasts overall global oil demand to fall by 1 million barrels per day this year, it projects demand expansion of 2 million barrels per day in 2027.

Crucially for near-term balances, global demand is expected to climb by over 8 million barrels per day by October from its May low of 97.9 million barrels per day, pushing global consumption above 2025 levels for the first time since February.

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US Oil Update: Crude Settle Lower as Market Weigh Fallout From US-Iran Strikes

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Oil & Energy

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