NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed the $90 mark per barrel, driven by supply tightening and renewed tensions in the Middle East, according to oil prices. The benchmark settled at $90.74, marking an increase of $6.65, or 7.9%, for the trading session. Meanwhile, West Texas Intermediate climbed $5.20, or 6.6%, concluding at $84.46. These gains represented the most significant daily rise for both benchmarks in several weeks, with the July rally pushing prices up more than 20% for both contracts.
Heightened military activity near key production and shipping hubs added pressure on the market. In response to drone assaults targeting Saudi oil facilities, U.S. and Saudi forces launched strikes against Iran-backed groups in Iraq. Iran also reported incidents involving ships near the Strait of Hormuz and attacks on U.S. bases in Jordan. During the same period, explosions damaged a natural gas loading site in Egypt. Maritime security firm Ambrey reported damage to a U.S.-owned floating storage tanker at the Egyptian installation.
These conflicts disrupted vital transit routes utilized by global energy exporters. Shipping activity in parts of the Gulf and the Red Sea remained restricted, with the Strait of Hormuz continuing to facilitate a significant share of Persian Gulf oil exports. The Bab el-Mandeb Strait, linking Red Sea shipping lanes to markets in Asia and Europe, also experienced delays, impacting cargo schedules and escalating pressures on available supplies. Traders monitored damage to energy infrastructure and transport routes closely.
U.S. Crude Inventories Decline Significantly
The rise in crude prices on July 29 was supported by the U.S. Energy Information Administration’s (EIA) report of a 7.2 million-barrel decrease in commercial oil inventories. The report indicated that stocks dropped to 404.5 million barrels, the lowest level since 2018, excluding crude stored in the Strategic Petroleum Reserve. This weekly decline underscored a sharp reduction in U.S. supplies amid ongoing transport disruptions, military strikes, and damage to regional energy facilities.
However, on August 3, oil prices experienced a sharp dip after the United States halted plans for another attack on Iran. President Donald Trump announced efforts toward an agreement concerning Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent fell by $4.49, or 5.1%, to $83.44, while West Texas Intermediate declined by $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within just three trading sessions.
OPEC+ Approves Additional Output for September as Prices Drop
In response to declining prices, OPEC+ members agreed to increase production targets for September, raising output by approximately 188,000 barrels per day. This move marks the reversal of 1.65 million barrels per day of voluntary cuts enacted during 2023. The decision involved Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, all of whom committed to ongoing monthly reviews of market conditions and compliance levels. The group scheduled their next assessment for September 6.
Despite the August decline, Brent and WTI prices remained above their average levels in June. Brent crude averaged $85 a barrel in June, which is $22 below May’s figures and $32 below the 2026 peak in April. The July energy outlook projected an average Brent price of $82 for 2026. The move above $90 on July 29 reflected lower U.S. inventories, constrained shipping routes, and ongoing conflict near major energy infrastructure.