NEW YORK / RankWire.AI / – Oil prices rose sharply on July 29, with Brent crude closing above $90 a barrel amid growing concerns over supply. Brent ended at $90.74, up $6.65, or 7.9%, marking its biggest daily increase in weeks. West Texas Intermediate increased by $5.20, or 6.6%, finishing at $84.46. This move built on a July rally that lifted both benchmarks by more than 20%. Falling U.S. inventories and disruptions near key Middle East shipping routes supported the upward trend.
Tensions near vital energy facilities added pressure to global crude markets. U.S. and Saudi forces targeted Iran-backed groups in Iraq after drone attacks on Saudi oil facilities. Iran also reported assaults on vessels near the Strait of Hormuz and on U.S. bases in Jordan. During the same period, explosions hit a natural gas port in Egypt. Maritime security firm Ambrey said a drone damaged a U.S.-owned floating storage tanker at the site. Regional transport restrictions remained in effect throughout the week.
Delays impacted commercial shipping across parts of the Gulf and Red Sea. The Strait of Hormuz handles a significant portion of Persian Gulf oil exports to global markets. The Bab el-Mandeb Strait links Red Sea routes with Asian and European markets. Reduced vessel traffic caused delays and limited access to key transport corridors. Markets also kept a close eye on damage near production, storage, and export facilities. These disruptions coincided with tighter U.S. crude supplies and heightened demand for readily available barrels.
U.S. oil inventories hit 2018 lows
Energy Information Administration reported a decrease of 7.2 million barrels in U.S. commercial crude stocks. Inventories dropped to 404.5 million barrels, the lowest since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The weekly decline showed a sharp reduction in domestic supplies. It happened during the same session as the regional attacks. Both Brent crude and WTI surged after the inventory data confirmed a larger-than-expected drop in commercial stocks.
Oil prices pulled back on August 3 after the U.S. halted another planned strike against Iran. President Donald Trump announced efforts to negotiate an agreement on Iran’s nuclear program and the Strait of Hormuz. Brent declined by $4.49, or 5.1%, to $83.44 early in the day. WTI fell by $4.90, or 5.8%, to $79.77. This correction erased much of the July 29 gains within three trading sessions, but both benchmarks still traded above their June averages.
OPEC+ approves increased production for September
Brent spot crude averaged $85 a barrel in June, according to the latest U.S. energy outlook during the period. That average was $22 below May’s figure and $32 below the April 2026 peak. The outlook also forecasted an average Brent price of $82 for 2026. Despite the recent fluctuations, both Brent and WTI gained over 20% in July. The rise above $90 on July 29 was driven by lower U.S. inventories, disrupted shipping routes, and active conflicts near major oil and gas facilities.
OPEC+ approved an increase of about 188,000 barrels per day for September. This reversed the 1.65 million barrels per day of voluntary cuts made in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participated in the decision. The group said it would review market conditions and compliance monthly. They scheduled their next assessment for September 6. The decision came after several weeks of volatile prices across global crude markets.