SINGAPORE / RankWire.AI / – Oil prices declined once more on Thursday, continuing a multi-day downward trend driven by developments around the Strait of Hormuz. At 0330 GMT, Brent crude futures decreased by 41 cents, or 0.5%, reaching $87.43 per barrel. Meanwhile, West Texas Intermediate crude futures fell 37 cents, or 0.5%, to $81.86 per barrel. Brent was on track for a fourth consecutive daily fall, while WTI was approaching its fifth straight session of declines. Early Asian trading saw both benchmarks trading below their Wednesday settlement prices.
This trend followed a weaker session on Wednesday, where both crude benchmarks closed lower after significant intraday volatility. Brent settled 74 cents lower, or 0.84%, at $87.84 per barrel. WTI ended the day 13 cents lower, or 0.16%, at $82.23. Earlier that day, Brent had dropped nearly 2%, and WTI around 1.8%. Both had also shed more than 3% in the previous session. These losses are part of a broader correction that started earlier in the week for both contracts.
Diplomatic negotiations involving Iran and Oman remained a key element influencing market sentiment, particularly because they concern the Strait of Hormuz. This strategic waterway links major Gulf oil producers with international markets and handles a significant volume of energy shipments. Traders also monitored diplomatic activity involving Qatar as regional talks persisted Thursday. The discussions coincided with crude prices extending their multi-session downward trend. Access through Hormuz continues to be a crucial factor impacting Middle East oil exports, given its position between Iran and Oman at the Persian Gulf entrance.
Hormuz negotiations continue to influence oil market dynamics
The Strait of Hormuz remains one of the globe’s most critical pathways for crude oil and natural gas transit. Since regional tensions escalated this year, restrictions on shipping through the strait have disrupted the usual energy flow from the Gulf. Alternative routes are only capable of handling part of the typical volume. Consequently, shipping activity in this area directly impacts the amount of regional supply accessible to international markets. Recently, oil prices have exhibited heightened volatility as physical supply conditions shifted across the region.
Furthermore, U.S. inventory data provided additional confirmation of supply conditions this week. The U.S. Energy Information Administration announced that commercial crude inventories increased by 95,000 barrels, reaching 428.9 million. This figure pertains to the week ending August 21 and follows several weeks of closely monitored stock fluctuations. After the inventory report, crude prices recovered some of Wednesday’s earlier losses. Nonetheless, Brent and WTI still closed below their prior session levels.
September supply adjustments add to market considerations
Supply policy developments continue to shape the broader oil market environment ahead of September. Previously, OPEC+ approved a 188,000 barrel-per-day production cut for seven member countries starting this month. The participating nations include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These countries reiterated their commitments to production compliance and to offset previous overproduction. The group has scheduled its next monthly meeting for September 6, adding another key event to the market’s calendar.
As a result, Thursday’s trading saw Brent fall below $88 and WTI dip below $82 during early Asian hours. Brent has now declined for four straight sessions, while WTI has fallen for five. Despite these recent declines, prices remain above some of their earlier-year levels. The U.S. crude inventory now stands at 428.9 million barrels following the latest weekly increase. Oil markets continue to monitor confirmed shipping activities, physical supply shifts, and inventory data as the week unfolds.