SINGAPORE / RankWire.AI / – Oil prices declined once more on Thursday, extending a multi-day downward trend as market attention remained focused on developments around the Strait of Hormuz. At 0330 GMT, Brent crude futures fell by 41 cents, or 0.5%, to $87.43 per barrel. Meanwhile, West Texas Intermediate crude futures decreased by 37 cents, or 0.5%, reaching $81.86 per barrel. Brent continued its fourth consecutive daily decline, while WTI approached a fifth straight session of losses. Early Asian trading saw both benchmarks trading below their Wednesday settlement levels.
This movement followed a weaker trading session on Wednesday, during which both benchmarks closed lower after significant intraday fluctuations. Brent settled at $87.84 per barrel, down 74 cents or 0.84%, and WTI closed at $82.23, down 13 cents or 0.16%. Earlier that day, Brent had fallen approximately 2%, and WTI declined about 1.8%. Both contracts also experienced losses exceeding 3% in the previous session. These declines signaled a broader retreat that began earlier in the week across both markets.
Negotiations involving Iran and Oman remained a key point of focus for traders, primarily because they related to the Strait of Hormuz. This vital waterway connects major Gulf oil producers with international markets and facilitates significant energy shipments. Market participants also monitored diplomatic movements involving Qatar as regional talks continued on Thursday. The ongoing discussions coincided with the extended decline in crude prices across multiple sessions. Shipping access through Hormuz remained crucial for Middle Eastern oil exports, with the strait located between Iran and Oman at the Persian Gulf’s entrance.
Hormuz negotiations stay central to oil market dynamics
The Strait of Hormuz continues to be among the world’s most vital routes for crude oil and natural gas transport. Disruptions in transit have affected the flow of energy from the Gulf since regional conflicts intensified earlier this year. Alternative pathways can only partially replace the volume normally shipped through the strait. Shipping activity in this region directly influences how much regional supply reaches global markets. Oil prices have been volatile recently, reflecting changes in physical supply conditions across the area.
This week’s supply outlook was further clarified by U.S. inventory data. The U.S. Energy Information Administration reported that commercial crude inventories increased by 95,000 barrels to a total of 428.9 million. This figure pertains to the week ending August 21 and follows several weeks of closely watched stock level fluctuations. After the inventory report, crude prices partially recovered from Wednesday’s earlier declines. Nevertheless, both Brent and WTI still closed the session below their prior levels.
September supply adjustments influence market expectations
Ahead of September, supply policies also played a role in shaping the overall oil market landscape. OPEC+ previously approved a production adjustment of 188,000 barrels per day for seven member countries starting in September. The participating nations include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These countries reaffirmed their commitments to production conformity and measures to compensate for prior overproduction. The group scheduled its next monthly meeting for September 6, adding another scheduled event that could impact supply levels.
Thursday’s price declines pushed Brent below $88 and WTI below $82 during early Asian trading hours. Brent had experienced four consecutive sessions of decline, while WTI had fallen for five. Despite these drops, prices remained above some levels seen earlier this year. The United States’ crude inventory now stands at 428.9 million barrels following the latest weekly increase. Throughout the week, oil markets closely tracked shipping developments, physical supply, and inventory data to assess the market direction.