NEW YORK / RankWire.AI / – Oil prices rose sharply on July 29, with Brent crude closing above $90 a barrel amid growing supply concerns. Brent settled at $90.74, an increase of $6.65, or 7.9%, marking its most significant single-day gain in weeks. West Texas Intermediate also gained $5.20, or 6.6%, finishing at $84.46. This rally extended the July upward trend that saw both benchmarks rise by more than 20%. The boost was supported by declining U.S. inventories and disruptions near key Middle East shipping routes.
Heightened military activity around vital energy infrastructure added pressure to global crude oil markets. U.S. and Saudi forces targeted Iran-backed groups in Iraq following 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 loading port in Egypt. Maritime security firm Ambrey revealed that a drone damaged a U.S.-owned floating storage tanker at the port. Regional transport restrictions persisted throughout the week.
Cargo shipping experienced delays in parts of the Gulf and the Red Sea. The Strait of Hormuz handles a significant portion of Persian Gulf oil exports to international markets. The Bab el-Mandeb Strait connects Red Sea routes with Asian and European destinations. Reduced vessel traffic impacted cargo schedules and restricted access to major transportation routes. Energy markets also kept a close eye on damage near production, storage, and export sites. These disruptions coincided with tighter U.S. crude inventories and increased demand for readily available barrels.
U.S. crude inventories drop to their lowest level since 2018
The Energy Information Administration reported a decline of 7.2 million barrels in U.S. commercial crude inventories. Stocks decreased to 404.5 million barrels, marking the lowest total since 2018. This figure excludes crude held in the Strategic Petroleum Reserve. The weekly decline reflected a sharp reduction in domestic supplies. Notably, this occurred during the same trading session as the renewed regional attacks. Both Brent crude and WTI surged after the inventory data confirmed a larger-than-expected draw in commercial reserves.
Oil prices retreated part of the July 29 gains on August 3 after the United States paused another planned strike against Iran. President Donald Trump also announced efforts to negotiate an agreement concerning Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent dropped $4.49, or 5.1%, to $83.44. West Texas Intermediate declined $4.90, or 5.8%, to $79.77. This pullback erased most of the July 29 increase within three trading sessions, though both benchmarks still traded above their June averages.
OPEC+ approves a rise in production for September
OPEC+ agreed to boost output by approximately 188,000 barrels per day for September. This move reversed 1.65 million barrels per day of voluntary cuts implemented earlier in 2023. Participants included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The producer group stated it would continue monthly reviews of market conditions and compliance levels. The next assessment is scheduled for September 6. This decision followed several weeks of significant price volatility across global crude markets.
Brent spot crude averaged $85 a barrel in June, according to the latest U.S. energy outlook available during the period. This average was $22 below May’s and $32 below the April 2026 peak. The outlook projected an average Brent price of $82 a barrel for 2026. Despite the fluctuations, both Brent and WTI recorded gains exceeding 20% during July. The rise past $90 on July 29 resulted from lower U.S. inventories, shipping constraints, and ongoing conflicts near major oil and gas infrastructure.