SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, marking several days of declines driven by ongoing developments related to the Strait of Hormuz. At 0330 GMT, Brent crude futures decreased by 41 cents, or 0.5%, settling at $87.43 per barrel. Meanwhile, West Texas Intermediate (WTI) crude futures declined by 37 cents, also by 0.5%, to reach $81.86 per barrel. Brent faced a fourth consecutive daily drop, and WTI was approaching a fifth straight session of losses, with both benchmarks remaining below their Wednesday settlement prices during early Asian trading hours.
This decline followed a weaker session on Wednesday, when both crude benchmarks closed lower after experiencing sharp intraday fluctuations. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI finished 13 cents down, or 0.16%, at $82.23. Earlier on Wednesday, Brent had fallen approximately 2%, and WTI about 1.8%. The previous session also saw losses exceeding 3% for both contracts. These declines contribute to a broader market correction that has been unfolding since earlier this week across both benchmarks.
The focus remained on negotiations involving Iran and Oman due to their implications for the Strait of Hormuz, a vital waterway connecting key Gulf oil producers with international markets and facilitating significant energy shipments. Market watchers also monitored diplomatic exchanges involving Qatar amid ongoing regional talks on Thursday. The discussions coincided with the continued downward trend in crude prices over multiple sessions. Shipping access through Hormuz remains crucial for the flow of Middle Eastern oil exports, with the strait situated between Iran and Oman at the Persian Gulf’s entrance.
Market stays attentive to Hormuz negotiations
The Strait of Hormuz is among the most strategic routes globally for crude oil and natural gas transit. Disruptions in shipping activity have affected the usual energy flow from the Gulf region since regional conflicts intensified earlier this year. Alternative routes are only able to handle a fraction of the volume normally transported through the strait, directly impacting the amount of regional supply accessible to international markets. Recent oil price movements have been volatile as physical supply conditions in the region shifted.
Adding to the supply picture, the U.S. Energy Information Administration reported an increase in U.S. crude inventories, providing a concrete data point for the market. The agency announced that commercial crude stocks rose by 95,000 barrels to reach 428.9 million barrels for the week ending August 21, following several weeks of closely watched inventory changes. After the release of this report, crude prices regained some ground from Wednesday’s earlier losses. Despite this, both Brent and WTI finished the session still below their previous closing levels.
September supply adjustments influence market outlook
Supply policy considerations also factored into the broader oil market environment as September approached. OPEC+ had previously approved a 188,000 barrel-per-day production adjustment, effective from September, involving seven countries including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These nations reaffirmed their commitments to production quotas and addressing overproduction from earlier periods. The group has scheduled its next monthly meeting for September 6, adding another key event to the upcoming supply calendar.
Thursday’s price decline pushed Brent below $88 and WTI below $82 during early Asian trading hours. Brent had been on a four-session losing streak, while WTI had declined for five consecutive days. The current prices are still above levels seen during earlier parts of the year. The latest U.S. crude inventory figure stands at 428.9 million barrels, following the weekly increase. Market participants continue to monitor shipping developments, physical supply, and inventory data as the week unfolds, shaping the ongoing trend in oil prices.