SINGAPORE / RankWire.AI / – Oil prices declined once more on Thursday, extending a multi-day downward trend as investors monitored developments around the Strait of Hormuz. Brent crude futures decreased by 41 cents, or 0.5%, reaching $87.43 a barrel at 0330 GMT. West Texas Intermediate crude futures also declined by 37 cents, or 0.5%, to settle at $81.86 a barrel. Brent was headed for a fourth consecutive daily decrease, while WTI was approaching a fifth straight session of declines. Both benchmarks traded below their Wednesday settlement prices during early Asian trading hours.
The decline followed a weaker session on Wednesday, with both crude benchmarks closing lower after notable intraday swings. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI dropped 13 cents, or 0.16%, ending at $82.23. Earlier that day, Brent had fallen approximately 2%, and WTI about 1.8%. Both contracts experienced declines exceeding 3% in the previous session. These movements contributed to a broader pullback that started earlier in the week across both markets.
Focus remained on negotiations involving Iran and Oman, as their discussions centered on the Strait of Hormuz. This crucial waterway links key Gulf oil producers with global markets and is vital for energy shipments. Market participants also observed diplomatic efforts involving Qatar as regional talks advanced on Thursday. The discussions occurred amid ongoing crude price declines across multiple sessions. Access through Hormuz continues to be a pivotal factor influencing the flow of Middle Eastern oil exports, with the strait positioned between Iran and Oman at the entrance to the Persian Gulf.
Hormuz negotiations remain key to the oil market
The Strait of Hormuz ranks among the world’s most critical routes for crude oil and natural gas transportation. Disruptions to shipping have affected normal energy flows from the Gulf since regional tensions escalated earlier this year. Alternative pathways can only handle a fraction of the usual volume passing through the strait. Maritime activity there directly influences how much regional supply reaches international markets. Recently, oil prices have exhibited volatility within a fluctuating range, driven by shifting physical supply conditions across the region.
Another data point confirming supply conditions emerged this week from U.S. inventories. The U.S. Energy Information Administration announced that commercial crude stocks increased by 95,000 barrels to reach 428.9 million. This rise pertains to the week ending August 21 and follows several weeks of closely monitored inventory changes. Following this report, crude prices recovered some of Wednesday’s earlier losses. Nonetheless, Brent and WTI still finished the session below their prior closing levels.
September supply adjustments influence market outlook
Supply policies also played a role in the broader context of oil markets ahead of September. OPEC+ previously approved a production adjustment of 188,000 barrels per day for seven member countries starting next month. The participating nations include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These countries reaffirmed their commitments to adhere to production quotas and compensate for past overproduction. The group’s next scheduled meeting is set for September 6, adding another planned supply event to the market calendar.
On Thursday, prices declined further, with Brent slipping below $88 and WTI falling below $82 during early Asian trading. Brent has decreased for four consecutive sessions, while WTI has dropped for five. Despite this, current prices remain above some levels seen earlier this year. Crude inventories in the U.S. are at 428.9 million barrels following the latest weekly increase. Throughout the week, oil markets continued to track confirmed shipping developments, physical supply data, and inventory reports as trading progressed.