NEW YORK / RankWire.AI / – Oil prices surged sharply on July 29, with Brent crude closing above $90 a barrel amid rising supply concerns. Brent settled at $90.74, increasing by $6.65, or 7.9%, marking its strongest daily gain in weeks. West Texas Intermediate rose by $5.20, or 6.6%, ending at $84.46. This movement continued a July rally that pushed both benchmarks up by more than 20%. The rise was supported by declining U.S. inventories and disruptions near key Middle East shipping routes.
Increased military activity close to vital energy infrastructure added upward pressure on global crude markets. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone attacks on Saudi oil facilities. Iran also reported assaults on ships 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 firm Ambrey indicated that a drone damaged a U.S.-owned floating storage tanker at the port. During the week, regional transportation restrictions persisted.
Delays affected commercial shipping through parts of the Gulf and Red Sea. The Strait of Hormuz, a major route for Persian Gulf oil exports, transports a significant portion of crude to international markets. The Bab el-Mandeb Strait links Red Sea routes with Asian and European markets. Reduced vessel traffic impacted cargo schedules and limited access to key transit pathways. Additionally, markets kept a close watch on damage near production, storage, and export sites, as these disruptions coincided with tighter U.S. crude supplies and heightened demand for readily available barrels.
U.S. crude inventories hit 2018 lows
Energy Information Administration reported a decrease of 7.2 million barrels in U.S. commercial crude inventories. Stockpiles fell to 404.5 million barrels, marking the lowest level since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The weekly decline reflected a sharp drop in domestic supplies, coinciding with the renewed regional attacks. After the inventory data was released, both Brent crude and WTI prices accelerated, confirming a larger-than-expected drawdown in commercial holdings.
On August 3, oil prices retreated somewhat after the United States paused a planned strike against Iran. President Donald Trump also announced efforts to negotiate an agreement related to Iran’s nuclear program and the Strait of Hormuz. Brent dropped $4.49, or 5.1%, to $83.44 in early trading. WTI decreased by $4.90, or 5.8%, reaching $79.77. This correction erased much of the July 29 gains within three trading sessions, though both benchmarks still traded above their June averages.
OPEC+ sanctions a higher September production quota
OPEC+ approved an increase of roughly 188,000 barrels per day for September’s output. This adjustment marked the reversal of 1.65 million barrels daily in voluntary cuts enacted in 2023. Participants included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The coalition stated it would continue to conduct monthly reviews of market conditions and adherence to production targets. Their next assessment was scheduled for September 6. The decision came after several weeks of significant price volatility in international crude markets.
Brent spot crude averaged $85 a barrel during June, according to the latest U.S. energy outlook available then. This average was $22 below May and $32 beneath the April 2026 peak. The outlook projected the average Brent price for 2026 at $82 per barrel. Despite the fluctuations, both Brent and WTI gained over 20% during July. The surge past $90 on July 29 was driven by lower U.S. inventories, shipping route disruptions, and ongoing conflicts near key oil and gas facilities.