Key facts
- Oil prices rose more than 1% on Friday, with Brent futures closing near $90 a barrel.
- July marked the strongest monthly gain for oil prices since March, with gains exceeding 20%.
- Geopolitical tensions, including US-Iran exchanges and Houthi attacks, increased concerns over global oil supply security.
- Falling US crude inventories contributed to upward price pressure.
- Disruptions to oil exports from Kazakhstan via the Caspian Pipeline Consortium terminal were reported.
Oil prices concluded Friday's trading session with gains exceeding $1 per barrel, marking their most significant monthly increase since March. The surge was fueled by escalating geopolitical tensions and mounting concerns over global crude supply disruptions.
Reports emerged of Iranian actions impacting tankers transiting the Strait of Hormuz, a critical global shipping lane. Western maritime authorities have not yet confirmed these specific incidents. However, broader geopolitical risks have intensified, including exchanges of strikes between the US and Iran, and Houthi attacks in the Red Sea, which have previously threatened maritime traffic.
Further supply concerns were amplified by attacks near Russia's Black Sea oil export infrastructure, specifically impacting the Caspian Pipeline Consortium (CPC) terminal. This facility is crucial for Kazakhstan's crude exports, a key source for European refiners. Although operations at the CPC terminal were expected to continue, the uncertainty surrounding supply security provided continued support for higher oil prices.
Falling US crude inventories also contributed to the upward price momentum. The US benchmark West Texas Intermediate (WTI) traded below $83.2 a barrel, while Brent crude hovered near $88 a barrel. The monthly gains for oil prices in July surpassed 20%, representing the strongest performance since March.