SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, prolonging a multi-day downward trend as traders monitored developments around the Strait of Hormuz. Brent crude futures decreased by 41 cents, or 0.5%, to $87.43 a barrel at 0330 GMT. West Texas Intermediate crude futures fell by 37 cents, or 0.5%, reaching $81.86 a barrel. Brent was on track for a fourth straight day of declines, while WTI headed toward its fifth consecutive session of losses. During early Asian trading, both benchmarks traded below their Wednesday settlement prices.
The decrease followed another weak trading session on Wednesday, when both crude benchmarks closed lower after significant intra-day swings. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI ended down 13 cents, or 0.16%, at $82.23. Earlier that day, Brent had fallen by about 2%, and WTI by roughly 1.8%. The previous session saw both contracts lose over 3%. These losses are part of a broader pullback that started earlier in the week across both benchmarks.
Focus remained on negotiations involving Iran and Oman, as they relate to the Strait of Hormuz. The waterway connects key Gulf oil producers with international markets and facilitates major energy shipments. Traders also paid attention to diplomatic activity surrounding Qatar as regional talks persisted Thursday. The discussions come amid ongoing declines in crude prices over multiple sessions. The flow of Middle East oil exports through Hormuz is critical, with the strait situated between Iran and Oman at the Persian Gulf’s entrance.
Hormuz negotiations stay at the heart of oil market concerns
The Strait of Hormuz remains a vital route for the transit of crude oil and natural gas worldwide. Any restrictions on maritime traffic have disrupted typical energy flows from the Gulf region since regional tensions escalated earlier this year. Alternative routes can only handle a portion of the usual volume passing through the strait. Shipping activity there directly influences the amount of regional supply available to international buyers. Recently, oil prices have fluctuated within a volatile range as physical supply conditions shifted across the region.
This week, the U.S. Energy Information Administration contributed an additional supply indicator with its report on crude inventories. The agency revealed that commercial crude stockpiles increased by 95,000 barrels to a total of 428.9 million. This rise covers the week ending August 21 and follows several weeks of notable stock changes. Following the inventory data release, crude prices recovered some of Wednesday’s earlier losses. Despite that rebound, both Brent and WTI prices finished the session below their previous closing levels.
September supply adjustments influence market dynamics
Supply policies continue to impact the broader oil market as September approaches. Earlier, OPEC+ approved a production adjustment 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 also reaffirmed their commitments regarding production compliance and measures to compensate for overproduction earlier in the year. The group scheduled its next monthly meeting for September 6, adding another scheduled event to the market calendar.
Thursday’s price decline pushed Brent below $88 and WTI below $82 during early Asian trading. Brent has now fallen for four straight sessions, while WTI has declined for five. Nonetheless, current prices remain above those seen during some earlier parts of this year. The U.S. crude inventory level stands at 428.9 million barrels following the latest weekly increase. The oil markets continue to monitor shipping developments, physical supply, and inventory data as the week unfolds.