NEW YORK / RankWire.AI / – Oil prices surged notably on July 29, with Brent crude closing above $90 a barrel amid growing concerns over supply disruptions. Brent settled at $90.74, rising by $6.65, or 7.9%, marking its most significant daily gain in weeks. West Texas Intermediate increased by $5.20, or 6.6%, finishing at $84.46. This move extended July’s rally, which pushed both benchmarks up over 20%. The rise was supported by declining U.S. inventories and disturbances along key Middle East shipping routes.
In the early hours of the week, military activity around vital energy infrastructure added pressure to the global crude oil markets. U.S. and Saudi forces launched strikes against Iran-backed groups in Iraq after drone attacks targeted Saudi oil facilities. Iran also reported assaults on vessels near the Strait of Hormuz and on U.S. military bases in Jordan. During this period, explosions impacted a natural gas loading port in Egypt. Maritime security firm Ambrey stated that a drone damaged a U.S.-owned floating storage tanker at the port. During the week, regional transport restrictions stayed in effect.
Delays affected commercial shipping in parts of the Gulf and Red Sea. The Strait of Hormuz, which handles a significant portion of Persian Gulf oil exports, remained a critical route for international markets. Similarly, the Bab el-Mandeb Strait links Red Sea routes with Asian and European markets. These disruptions caused delays in cargo deliveries and limited access to vital transportation corridors. Energy markets also kept a close eye on damage at production, storage, and export facilities. These issues coincided with tighter U.S. crude inventories and heightened demand for readily available barrels.
U.S. Oil Inventories Hit 2018 Lows
The Energy Information Administration reported a decline of 7.2 million barrels in U.S. commercial crude stocks. The total fell to 404.5 million barrels, marking the lowest level since 2018. This figure excludes stocks held in the Strategic Petroleum Reserve. The weekly decrease highlighted a sharp reduction in domestic supplies and coincided with the regional attacks. Following this data, both Brent crude and WTI prices accelerated, confirming the larger-than-expected drawdown in commercial reserves.
On August 3, oil prices retraced part of their rally after the United States halted another planned strike against Iran. President Donald Trump announced efforts to broker an agreement related to Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent declined by $4.49, or 5.1%, settling at $83.44. WTI dropped $4.90, or 5.8%, to $79.77. This correction erased much of the July 29 surge within just three trading sessions, though both benchmarks remained above their June averages.
OPEC+ Approves a Production Increase for September
The OPEC+ coalition authorized an increase of approximately 188,000 barrels per day for September output. This decision marked the reversal of 1.65 million barrels per day of voluntary cuts introduced earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman were among those participating. The group announced that it will continue monthly reviews of market conditions and compliance levels. The next assessment is scheduled for September 6. This decision came after weeks of significant price volatility across global crude markets.
Brent spot crude averaged $85 a barrel in June, based on the latest U.S. energy outlook available during that period. This figure was $22 below May’s average and $32 below the April 2026 peak. For 2026, the outlook projected an average Brent price of $82 a barrel. Despite the fluctuations, both Brent and WTI recorded gains exceeding 20% during July. The rise above $90 on July 29 was driven by declining U.S. inventories, shipping restrictions, and ongoing conflicts near key oil and gas infrastructure.