SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, extending several days of decline as traders closely monitored developments surrounding the Strait of Hormuz. At 0330 GMT, Brent crude futures decreased by 41 cents, or 0.5%, to $87.43 a barrel. Meanwhile, West Texas Intermediate crude futures dropped 37 cents, or 0.5%, to $81.86 per barrel. Brent was on track for a fourth straight daily decline, while WTI edged toward its fifth consecutive session of losses. Both benchmarks remained below their Wednesday settlement levels during early trading hours in Asia.
This downturn followed another subdued trading session on Wednesday, when both crude benchmarks closed lower after experiencing sharp intraday fluctuations. Brent finished 74 cents lower, or 0.84%, at $87.84 a barrel. WTI declined by 13 cents, or 0.16%, ending the day at $82.23. Earlier that day, Brent had fallen nearly 2%, and WTI dropped around 1.8%. Both contracts had also lost more than 3% in the previous session. The ongoing decline represents a broader pullback that started earlier in the week across both markets.
Focus remained on negotiations involving Iran and Oman, as they revolve around the strategic Strait of Hormuz. This vital waterway links major Gulf oil producers to global markets and facilitates significant energy shipments. Traders also observed diplomatic activities involving Qatar amid ongoing regional talks on Thursday. The discussions came amidst extended declines in crude prices. The flow of Middle East oil exports continues to be heavily influenced by access through Hormuz, which sits between Iran and Oman at the entrance to the Persian Gulf.
Market attention fixed on Hormuz discussions
The Strait of Hormuz remains among the world’s most critical routes for crude oil and natural gas transport. Disruptions in traffic due to regional conflicts have affected normal energy flows from the Gulf since the conflict intensified earlier this year. Alternative pathways can only partially compensate for the volume usually transported via the strait. The activity within this corridor directly impacts the amount of regional supply reaching international markets. Recently, oil prices have fluctuated within a volatile range as physical supply conditions across the region shifted.
Additional supply insights came from U.S. inventory data, offering a clearer picture of the market’s supply status this week. The U.S. Energy Information Administration reported that commercial crude stockpiles increased by 95,000 barrels, reaching a total of 428.9 million. This rise corresponds to the week ending August 21 and follows several weeks of closely monitored inventory changes. Following the release of this data, crude prices recouped part of Wednesday’s earlier losses. Nonetheless, both Brent and WTI finished the session below their previous closing prices.
September’s supply adjustments influence market dynamics
Supply policies continue to shape the overall outlook ahead of September. Previously, OPEC+ approved a production adjustment of 188,000 barrels per day for seven member countries beginning in September. This group includes Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The nations reaffirmed their commitments to conform with production quotas and to compensate for any earlier overproduction. Their next scheduled monthly meeting is set for September 6, adding another key event to the market calendar.
Thursday’s decline pushed Brent below $88 and WTI under $82 during early Asian trading. Brent has declined for four consecutive sessions, while WTI has fallen for five. Despite these drops, current prices are still higher than some levels seen earlier this year. U.S. crude inventories now stand at 428.9 million barrels following the latest weekly increase. Throughout the week, oil markets have continued to respond to confirmed shipping developments, physical supply conditions, and inventory updates.