SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, continuing a multi-day downward trend as market attention focused on developments around the Strait of Hormuz. Brent crude futures fell by 41 cents, or 0.5%, reaching $87.43 a barrel at 0330 GMT. West Texas Intermediate crude futures declined by 37 cents, or 0.5%, to $81.86 per barrel. Brent was heading for a fourth consecutive daily decline, while WTI approached a fifth straight session of losses. These declines kept both benchmarks below their Wednesday settlement levels during early Asian trading hours.
This movement followed a weaker session on Wednesday, where both crude benchmarks closed lower after experiencing sharp intraday fluctuations. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI decreased by 13 cents, or 0.16%, to $82.23. Earlier that day, Brent had dropped about 2%, with WTI falling roughly 1.8%. Additionally, both contracts had lost over 3% during the previous trading session. The ongoing decline is part of a broader pullback that started earlier this week across both benchmarks.
Markets remained focused on negotiations involving Iran and Oman because they relate to the Strait of Hormuz. This crucial waterway links major Gulf oil producers with global markets and handles significant energy shipments. Attention was also directed toward diplomatic efforts involving Qatar as regional discussions carried on Thursday. The ongoing talks come amid a continued decline in crude prices over multiple sessions. The flow of oil exports from the Middle East depends heavily on shipping access through Hormuz, which lies between Iran and Oman at the Persian Gulf’s entrance.
Hormuz negotiations remain vital to the oil market
The Strait of Hormuz is among the world’s most crucial routes for transporting crude oil and natural gas. Disruptions to traffic there have impacted normal energy flows from the Gulf since regional conflicts intensified earlier this year. Alternative routes are only capable of handling a portion of the usual volume passing through Hormuz. Shipping activities in the strait directly influence the amount of regional supply reaching international markets. Recently, oil prices have fluctuated within a volatile range as physical supply conditions across the region experienced changes.
This week’s inventory data from the U.S. Energy Information Administration provided an additional confirmed indicator of supply. The agency reported a rise of 95,000 barrels in commercial crude inventories, bringing the total to 428.9 million. This increase pertains to the week ending August 21 and follows several weeks of closely monitored stock changes. Following the release of this data, crude prices recovered part of Wednesday’s earlier losses. Nevertheless, both Brent and WTI closed below their previous session levels.
Market considers September supply adjustments
Supply policy also plays a role in the overall oil market landscape as September approaches. OPEC+ previously approved a production cut of 188,000 barrels per day for seven member countries starting in September. The participating nations include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These countries reaffirmed their commitments to production conformity and compensation for any earlier overproduction. The group scheduled its next monthly meeting for September 6, adding another anticipated supply event to the market calendar.
Thursday’s price decline caused Brent to fall below $88 and WTI below $82 during early Asian trading. Brent has declined for four consecutive sessions, while WTI has experienced five days of losses. Despite this, the latest prices still remain above levels seen during some earlier periods this year. After the weekly inventory increase, U.S. crude stocks reached 428.9 million barrels. As the week unfolds, oil markets continue to monitor confirmed shipping developments, physical supply, and inventory data.