NEW YORK / RankWire.AI / – Oil prices saw a rapid increase on July 29, with Brent crude closing above $90 a barrel amid mounting supply concerns. Brent settled at $90.74, rising $6.65, or 7.9%, marking its most substantial single-day gain in several weeks. West Texas Intermediate also climbed $5.20, or 6.6%, ending at $84.46. This move built upon a July rally that boosted both benchmarks by over 20%. The rise was supported by declining U.S. inventories and disruptions along key Middle East shipping routes.
Tensions near vital energy infrastructure added pressure to global crude markets. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone strikes on Saudi oil facilities. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. bases in Jordan. During the same period, explosions hit a natural gas loading port in Egypt. Maritime security company Ambrey indicated that a drone damaged a U.S.-owned floating storage tanker at the site. Throughout the week, regional transportation restrictions persisted.
Delays in commercial shipping occurred across sections of the Gulf and Red Sea. The Strait of Hormuz remains a crucial route for a significant portion of Persian Gulf oil exports to international markets. The Bab el-Mandeb Strait connects Red Sea routes to Asian and European markets. Reduced vessel traffic impacted cargo schedules and limited access to key transit corridors. Market participants also kept a close watch on damage near production, storage, and export facilities, which coincided with tighter U.S. crude supplies and increased demand for readily available barrels.
U.S. crude inventories fall to lowest levels since 2018
Energy Information Administration reported a decrease of 7.2 million barrels in U.S. commercial crude stocks. The inventories declined to 404.5 million barrels, the lowest since 2018, excluding crude held in the Strategic Petroleum Reserve. This weekly drop highlighted a significant reduction in domestic supplies, occurring during the same session as the renewed regional attacks. Following the inventory report, both Brent crude and WTI prices gained momentum after confirming a larger-than-expected drawdown in commercial holdings.
Oil prices partially retreated on August 3 after the United States paused another planned strike against Iran. President Donald Trump also indicated efforts to negotiate an agreement concerning Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent fell $4.49, or 5.1%, to $83.44, while West Texas Intermediate dropped $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 surge within three trading sessions, although both benchmarks remained above their June averages.
OPEC+ approves an increase in September oil output
OPEC+ sanctioned a boost of roughly 188,000 barrels per day in September production. This adjustment marks the reversal of 1.65 million barrels per day of voluntary cuts implemented in 2023. The decision involved Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group stated it would continue conducting monthly reviews of market conditions and production adherence, with the next assessment scheduled for September 6. This decision followed several weeks of volatile price fluctuations in international crude markets.
Brent spot crude averaged $85 a barrel in June, based on the latest U.S. energy outlook available at the time. This average was $22 below May and $32 below the April 2026 peak. The outlook also projected an average Brent price of $82 for 2026. Despite the August decline, both Brent and WTI experienced gains exceeding 20% during July. The rise above $90 on July 29 resulted from lower U.S. inventories, shipping disruptions, and active conflicts near major oil and gas infrastructure.