ع
The Emirates News Agency put the settlement for Brent crude futures at $116.72 a barrel after a $3.55 gain that equalled 3.14 percent, marking the highest close since April 29. West Texas Intermediate futures settled at $103.27 a barrel, up $3.80 or 3.8 percent. The weekly performance showed Brent rising 6 percent and WTI climbing 2.3 percent.
A Kpler assessment found that a prolonged Middle East conflict has shifted the second half of 2026 oil balance from surplus to deficit. Partial closure of the Strait of Hormuz has lowered Middle Eastern production estimates by nearly 2 million barrels per day. Chinese refiners have limited further gains through restrained crude intake that remains 18 percent below year-ago levels.
Goldman Sachs researchers attributed sustained high prices to precautionary physical buying by crude purchasers and portfolio hedging by institutional investors sensitive to energy costs. Refined product exports from the Persian Gulf stand at only 40 percent of 2025 averages due to refinery damage. This tightness has placed additional upward pressure on gasoline and diesel markets.
BOK Financial Securities senior vice president for trading Dennis Kissler said the latest geopolitical escalations are pointing to a more intensified strike on Iran, which is pushing crude higher throughout the price curve. He added that most traders expect oil prices to be higher for longer. The conflict, now in its ninth month, has lifted Brent more than 85 percent this year.
The Bessemer Trust outlook noted that while physical supply has recovered, a significant geopolitical risk premium persists in current pricing above $100 a barrel. Emergency reserve releases have helped moderate increases since the war began. Declining inventories have reinforced this premium even as the market heads toward a surplus in early 2027.
Houthi attacks on Saudi energy infrastructure including the Shaybah oilfield and Yanbu port have heightened concerns over wider disruptions according to shipping analysis from Lloyd’s List Intelligence. Seven oil tankers sustained damage in the Strait of Hormuz in a recent 24-hour period. Oil flows continue under U.S. military protection despite the incidents.
