SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, continuing a multi-day downward trend as traders monitored developments around the Strait of Hormuz. Brent crude futures fell by 41 cents, or 0.5%, reaching $87.43 per barrel at 0330 GMT. Meanwhile, West Texas Intermediate crude futures decreased by 37 cents, or 0.5%, to $81.86 a barrel. Brent was headed for a fourth consecutive daily decline, and WTI was approaching its fifth straight session of losses. These declines kept both benchmarks below their Wednesday settlement levels during early Asian trading hours.
This movement followed a weaker trading session on Wednesday, when both crude benchmarks closed lower after volatile intraday swings. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI finished down 13 cents, or 0.16%, at $82.23. Earlier that day, Brent had dropped around 2%, and WTI about 1.8%. Both contracts had also lost more than 3% in the previous session. The persistent losses reflect a broader market pullback that began earlier in the week for both benchmarks.
Focus remained on negotiations involving Iran and Oman, as they pertain to the Strait of Hormuz. This vital waterway connects major Gulf oil producers to international markets and facilitates crucial energy shipments. Traders also observed diplomatic activities involving Qatar as regional discussions continued on Thursday. The ongoing talks coincided with the extended decline in crude prices over multiple sessions. Access through Hormuz remains a critical factor influencing the flow of Middle Eastern oil exports, as the strait is situated between Iran and Oman at the Gulf’s entrance.
Hormuz negotiations stay at the heart of oil market dynamics
The Strait of Hormuz continues to be one of the most significant routes globally for the transportation of crude oil and natural gas. Disruptions in traffic have hampered normal energy flows from the Gulf since regional tensions escalated earlier this year. Alternative shipping routes can only handle a portion of the usual volume passing through the strait. The activity there has a direct impact on how much regional supply reaches international markets. Recently, oil prices have fluctuated within a volatile range as physical supply conditions across the region shifted.
This week’s market outlook was further shaped by U.S. inventory data, which added a concrete measure of supply. The U.S. Energy Information Administration announced a rise of 95,000 barrels in commercial crude inventories, totaling 428.9 million. This increase covers the week ending August 21 and follows several weeks of closely monitored stock changes. Following the report, crude prices recovered some of Wednesday’s earlier losses, though both Brent and WTI still closed below their previous levels by the end of the session.
Supply adjustments for September influence market outlook
Ahead of September, supply policies remained a key component in the broader oil market context. OPEC+ had previously approved a 188,000 barrel-per-day production adjustment for seven member countries starting in September. This group includes Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They also reaffirmed their commitments to production conformity and compensation for prior overproduction. The next scheduled OPEC+ meeting is set for September 6, adding another planned supply adjustment to the market calendar.
Thursday’s downward move left Brent below $88 and WTI under $82 during early Asian trading. Brent had declined for four straight sessions, while WTI had been down for five. Despite these drops, prices remained above some earlier levels seen this year. U.S. crude inventories reached 428.9 million barrels after the latest weekly increase, and markets continued to monitor confirmed shipping activities, physical supply, and inventory data as the week unfolded.