SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, extending a multi-day downward trend as traders monitored ongoing developments around the Strait of Hormuz. At 0330 GMT, Brent crude futures dropped by 41 cents, or 0.5%, settling at $87.43 per barrel. Meanwhile, West Texas Intermediate crude futures decreased by 37 cents, or 0.5%, reaching $81.86 per barrel. Brent is headed for its fourth consecutive daily loss, while WTI is approaching a fifth day of declines. Both benchmarks traded below their Wednesday settlement prices in early Asian markets.
This downturn followed a weaker trading session on Wednesday, when both crude benchmarks ended lower after significant intraday fluctuations. Brent declined by 74 cents, or 0.84%, closing at $87.84 a barrel. WTI decreased by 13 cents, or 0.16%, to finish at $82.23. Earlier that day, Brent had fallen approximately 2%, and WTI had dropped roughly 1.8%. During the previous session, both contracts also experienced declines of more than 3%. These losses contribute to a broader pullback that began earlier this week across the market.
Market attention remained on negotiations involving Iran and Oman, as they relate to the strategic Strait of Hormuz. The waterway, a vital link connecting major Gulf oil producers with global markets, continues to carry substantial energy shipments. Diplomatic activity involving Qatar also drew focus, as regional talks persisted on Thursday. The discussions coincided with the ongoing decline in crude prices over multiple sessions. The ability to access shipping routes through Hormuz remains a critical factor influencing Middle East oil exports. The strait, situated between Iran and Oman at the Persian Gulf entrance, continues to be a focal point for market participants.
Hormuz negotiations remain pivotal for the oil market
The Strait of Hormuz stands out as one of the world’s most essential pathways for crude oil and natural gas transportation. Since regional tensions intensified this year, restrictions on transit have disrupted typical energy flows from the Gulf. Alternative routes can only partially compensate for the volume normally moved through the strait. The shipping activity there directly influences the amount of regional supply reaching international markets. Recently, oil prices have fluctuated within a volatile range, driven by changing physical supply conditions across the region.
This week’s market outlook was also shaped by new US inventory data, providing further insight into supply dynamics. The U.S. Energy Information Administration announced that commercial crude inventories increased by 95,000 barrels to 428.9 million. This figure reflects data for the week ending August 21, following several weeks of closely monitored stock changes. After the inventory report was released, crude prices recovered some of Wednesday’s earlier losses. Despite this rebound, both Brent and WTI still closed below their previous levels.
September supply adjustments influence market sentiment
Looking ahead to September, supply policies remain a key aspect of the broader oil market context. OPEC+ has previously approved a production adjustment of 188,000 barrels per day for seven participating nations starting that month. The countries involved include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These nations reaffirmed their commitments to both conforming to production quotas and compensating for prior overproduction. The group has scheduled its next monthly meeting for September 6, adding another significant event to the supply calendar.
Thursday’s decline pushed Brent below $88 and WTI below $82 during early Asian trading. Brent has now fallen for four straight sessions, while WTI has experienced five consecutive days of decline. Despite recent drops, current prices still remain above some earlier levels this year. US crude inventories stand at 428.9 million barrels following the latest weekly increase, and the markets continue to follow confirmed shipping developments, physical supply, and inventory figures as the week progresses.
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