NEW YORK / RankWire.AI / – Oil prices rose sharply on July 29, as Brent crude closed above $90 a barrel amid rising supply concerns. Brent settled at $90.74, marking an increase of $6.65, or 7.9%, which was its strongest daily gain in several weeks. West Texas Intermediate climbed $5.20, or 6.6%, finishing at $84.46. This upward movement extended July’s rally, pushing both benchmarks up by over 20%. Declining U.S. inventories and disruptions near key Middle East shipping routes contributed to the price increase.
Tensions near critical energy facilities intensified pressure on global crude oil 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. military bases in Jordan. During the same 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. Regional transportation restrictions remained in effect throughout the week.
Delays affected commercial shipping across sections of the Gulf and Red Sea. The Strait of Hormuz, which handles a significant portion of Persian Gulf oil exports, remained a vital route for international buyers. The Bab el-Mandeb Strait connects Red Sea routes to Asian and European markets. Reduced vessel traffic disrupted cargo schedules and limited access to several key transit corridors. Simultaneously, energy markets monitored damage near production, storage, and export facilities. These disruptions coincided with tighter U.S. crude supplies and increased demand for readily available barrels.
U.S. crude inventories dip to lowest levels since 2018
The Energy Information Administration reported a decrease of 7.2 million barrels in U.S. commercial crude inventories. Inventories declined to 404.5 million barrels, the lowest since 2018, excluding crude stored in the Strategic Petroleum Reserve. This weekly drop indicated a significant reduction in domestic supplies and occurred during the same session as the renewed regional attacks. Both Brent crude and WTI surged after the inventory data confirmed a larger-than-expected decline in commercial holdings.
On August 3, oil prices retreated after the United States halted 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 fell $4.49, or 5.1%, to $83.44, while West Texas Intermediate declined $4.90, or 5.8%, to $79.77. This pullback erased much of the July 29 surge within three trading sessions, though both benchmarks still traded above their June averages.
OPEC+ approves increased production for September
OPEC+ decided to raise output by approximately 188,000 barrels per day for September. This move completes the reversal of 1.65 million barrels per day of voluntary cuts enacted in 2023. Participating countries included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group stated it would continue conducting monthly reviews of market conditions and compliance with production targets. The next assessment is scheduled for September 6. The decision followed several 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 this period. This average was $22 below May’s level and $32 under the April 2026 peak. The same projection estimated the average Brent price for 2026 at $82 a barrel. Despite the recent fluctuations, Brent and WTI both gained over 20% during July. The rise above $90 on July 29 was driven by lower U.S. inventories, shipping route restrictions, and ongoing conflicts around major oil and gas infrastructure.