SINGAPORE / RankWire.AI / – Oil prices declined again on Thursday, extending a downward trend that has persisted over several sessions. Brent crude futures fell by 41 cents, or 0.5%, reaching $87.43 a barrel at 0330 GMT. U.S. West Texas Intermediate crude decreased by 37 cents, or 0.5%, to $81.86 a barrel. Brent appeared set for a fourth consecutive daily decrease, while WTI was heading for its fifth straight decline. Traders kept a close eye on developments influencing energy shipments via the Strait of Hormuz.
Both benchmarks had already finished lower on Wednesday after bouncing back from larger losses earlier in the session. Brent settled 74 cents lower, or 0.84%, at $87.84 per barrel. WTI closed down by 13 cents, or 0.16%, at $82.23. Earlier that day, Brent had fallen approximately 2%, and WTI around 1.8%. The previous session also saw declines of over 3% for both contracts. These movements contributed to ongoing pressure on crude prices during early Asian trading hours.
Diplomatic activity involving Iran and Oman remained at the forefront, as discussions centered on conditions surrounding the Strait of Hormuz. Qatar also participated in diplomatic efforts related to these negotiations. The strait connects the Persian Gulf with the Gulf of Oman and serves as a vital route for global shipping. It transports significant volumes of crude oil and other energy commodities from Gulf producers, meaning any shifts in shipping access can directly impact physical oil flows. As a result, this waterway continues to be a key factor in daily crude market dynamics.
Hormuz Strait Continues to Influence Market Movements
The Strait of Hormuz remains one of the world’s most critical channels for international energy transportation. Major Gulf exporters depend on this route to deliver oil to consumers across Asia and beyond. Alternative pipelines are only capable of handling a portion of the volume typically moved through the waterway. Market participants have been closely monitoring shipping conditions in the area amid recent regional tensions. As traders evaluate confirmed changes in physical supply and transportation routes, oil prices have experienced sharp daily fluctuations, with these swings continuing into Thursday’s Asian trading session.
Recent U.S. inventory data offered additional insight into short-term oil supply levels. The U.S. Energy Information Administration announced that commercial crude stocks increased by 95,000 barrels last week. Inventories now stand at 428.9 million barrels for the week ending August 21. The rise was below market expectations prior to the report. Following the release of these figures, crude prices recovered some of their earlier Wednesday losses. Nonetheless, Brent and WTI still closed below their previous settlement prices despite the partial rebound.
September OPEC+ Production Adjustment Remains on the Table
The broader market outlook continues to incorporate OPEC+’s upcoming supply policy, with a focus on September. Seven member nations approved a production cut of 188,000 barrels per day for the upcoming month. These countries include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They also reaffirmed their commitments to production compliance and compensation for prior overproduction. The next scheduled meeting for these countries is set for September 6, and it remains an official event on the global oil calendar.
Early Thursday trading saw Brent fall below $88 a barrel and WTI dip under $82. These declines extended a week-long downward trend across both benchmarks. Crude inventories in the U.S. stood at 428.9 million barrels after the recent weekly increase. Focus remained on confirmed shipping developments, regional diplomatic talks, and physical supply factors. Additionally, traders continued to watch inventory levels and upcoming production decisions, all of which contributed to ongoing price movements as August neared its end in the global energy markets.