NEW YORK / RankWire.AI / – Oil prices saw a significant climb on July 29, with Brent crude closing above $90 a barrel amid mounting supply concerns. Brent settled at $90.74, increasing by $6.65, or 7.9%, marking its largest daily gain in several weeks. West Texas Intermediate also rose by $5.20, or 6.6%, ending at $84.46. This move extended a July rally that pushed both benchmarks up more than 20%. The rise was supported by declining U.S. inventories and disruptions along key Middle East shipping routes.
Tensions in military activity near vital energy installations added downward pressure on global crude markets. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone attacks on Saudi oil facilities. Iran reported attacks on vessels near the Strait of Hormuz and on U.S. bases in Jordan. Explosions also struck a natural gas loading port in Egypt during the same period. According to maritime security company Ambrey, a drone damaged a U.S.-owned floating storage tanker at that port. Regional transport restrictions persisted through the week.
Delays in commercial shipping affected sectors across the Gulf and Red Sea. The Strait of Hormuz remains a critical route, carrying a large portion of Persian Gulf oil exports to international markets. The Bab el-Mandeb Strait connects Red Sea routes with Asian and European markets. As vessel traffic slowed, cargo schedules faced disruptions, and access to several key transportation corridors became limited. Meanwhile, market participants kept a close eye on damages near production, storage, and export sites, which compounded concerns amid tighter U.S. crude supplies and increased demand for readily available barrels.
U.S. oil inventories fall to lowest levels since 2018
The Energy Information Administration reported a decline of 7.2 million barrels in U.S. commercial crude inventories. The total dropped to 404.5 million barrels, the lowest since 2018, excluding stocks in the Strategic Petroleum Reserve. This weekly decrease indicated a sharp reduction in domestic supplies, coinciding with the recent regional attacks. Following the inventory data, Brent crude and WTI both accelerated, confirming a larger-than-expected draw in commercial stocks.
On August 3, oil prices retreated after the United States halted another planned strike against Iran. President Donald Trump announced efforts to negotiate agreements related to Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent fell $4.49, or 5.1%, to $83.44. WTI declined by $4.90, or 5.8%, reaching $79.77. This correction erased much of the July 29 rally within just three trading sessions, though both benchmarks still remained above their June averages.
OPEC+ Approves Increased Oil Production for September
OPEC+ agreed to raise output by approximately 188,000 barrels per day for September. This adjustment marks the reversal of 1.65 million barrels per day of voluntary cuts made earlier in 2023. Key participants included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The organization stated that monthly reviews of market conditions and compliance would continue, with the next assessment scheduled for September 6. This decision came after several weeks marked by sharp price fluctuations across the global crude market.
Brent spot crude averaged $85 a barrel in June, according to the latest U.S. energy outlook available during that period. This average was $22 below May and $32 below the April 2026 peak. The forecast for 2026 projects an average Brent price of $82 a barrel. Despite the recent volatility, both Brent and WTI recorded gains exceeding 20% during July. The rise above $90 on July 29 was driven by lower U.S. inventories, constrained shipping routes, and ongoing conflicts near major oil and gas infrastructure.