SINGAPORE / RankWire.AI / – Oil prices declined further on Thursday, extending a multi-day downward trend as markets closely monitored developments around the Strait of Hormuz. At 0330 GMT, Brent crude futures dropped by 41 cents, or 0.5%, to reach $87.43 per barrel. Meanwhile, West Texas Intermediate crude futures fell by 37 cents, or 0.5%, settling at $81.86 per barrel. Brent was heading for its fourth consecutive daily decrease, while WTI was approaching a fifth straight session of losses. During early Asian trading, both benchmarks traded below their Wednesday settlement prices.
This downturn followed a similarly weak trading session on Wednesday, where both benchmarks closed lower after experiencing sharp intraday fluctuations. Brent declined by 74 cents, or 0.84%, to $87.84 a barrel, and WTI decreased by 13 cents, or 0.16%, to $82.23. Earlier in the day, Brent had dropped approximately 2%, and WTI had fallen about 1.8%. Both contracts had also lost more than 3% in the previous session, continuing a broader correction that had begun earlier in the week for both benchmarks.
The focus remained on ongoing negotiations involving Iran and Oman, centered around the Strait of Hormuz, which is a vital maritime route connecting major Gulf oil producers with global markets and facilitating significant energy shipments. Market participants also kept an eye on diplomatic activities involving Qatar as regional talks persisted Thursday. These discussions occurred amid the ongoing decline in crude prices over multiple sessions. The access to shipping through Hormuz was a crucial factor influencing the flow of Middle Eastern oil exports, with the strait situated between Iran and Oman at the Persian Gulf entrance.
Hormuz negotiations stay at the heart of oil market dynamics
As one of the most critical global routes for crude oil and natural gas shipments, the Strait of Hormuz has been disrupted since the escalation of regional conflicts earlier this year, limiting traffic and affecting the usual energy flow from the Gulf. Alternative pathways can only handle a portion of the volume normally processed through this narrow waterway, meaning shipping activity there directly impacts the volume of regional supplies reaching international markets. Recently, oil prices have fluctuated within a volatile range, reflecting changes in physical supply conditions across the region.
Adding to the supply picture, the U.S. Energy Information Administration released data this week confirming increased inventory levels. It reported that commercial crude stocks grew by 95,000 barrels, reaching 428.9 million, for the week ending August 21, following several weeks of closely watched inventory fluctuations. The inventory report helped oil prices recover some of Wednesday’s earlier losses, although both Brent and WTI still closed below their previous session levels as trading progressed.
Market considerations include September supply adjustments
Supply policy remained an important element in the broader market outlook, particularly with September approaching. OPEC+ had already approved a production adjustment of 188,000 barrels per day for seven participating nations starting in September, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These nations reaffirmed their commitments to production conformity and compensating for any previous overproduction. The group also scheduled its next monthly meeting for September 6, adding another anticipated supply-related event to the market calendar.
Thursday’s decline pushed Brent below $88 and WTI below $82 during early Asian trading hours. Brent had experienced four consecutive days of decline, while WTI had fallen for five days in a row. Despite this, current prices remained above those seen during some earlier parts of the year. US crude inventories stood at 428.9 million barrels after the latest weekly increase, with markets continuing to monitor confirmed shipping developments, physical supply levels, and inventory data as the week unfolded.