SINGAPORE / RankWire.AI / – Oil prices declined once more on Thursday, prolonging a multi-day downward trend as traders monitored updates related to the Strait of Hormuz. Brent crude futures decreased by 41 cents, or 0.5%, reaching $87.43 a barrel at 0330 GMT. West Texas Intermediate crude futures fell 37 cents, or 0.5%, settling at $81.86 a barrel. Brent is on track for a fourth straight daily drop, while WTI is heading toward a fifth consecutive session of declines. Both benchmarks traded below their Wednesday settlement levels during early Asian market hours.
This decline followed a weaker trading session on Wednesday, when both benchmarks experienced sharp intraday swings before closing lower. Brent finished 74 cents lower, or 0.84%, at $87.84 per barrel, while WTI declined 13 cents, or 0.16%, ending at $82.23. Earlier that day, Brent had fallen approximately 2%, and WTI about 1.8%. The previous session also saw losses of more than 3% for both contracts. These declines contributed to a broader pullback that had been underway earlier in the week across both markets.
Market focus remained on negotiations involving Iran and Oman because they pertain to the Strait of Hormuz. The waterway connects key Gulf oil producers to global markets and facilitates significant energy shipments. Traders also observed diplomatic developments involving Qatar as regional talks persisted Thursday. The discussions coincided with the ongoing multi-session decline in crude prices. Access to shipping routes through Hormuz remained a crucial factor influencing Middle East oil exports, as the strait lies between Iran and Oman at the Persian Gulf entrance.
Hormuz negotiations stay at the heart of oil trading
The Strait of Hormuz remains among the world’s most vital corridors for crude oil and natural gas transport. Any restrictions on traffic have disrupted usual energy flows from the Gulf since regional tensions intensified this year. Alternative routes can only partially compensate for the volume normally passing through the strait. Shipping activities there directly impact how much regional supply reaches international markets. Recently, oil prices have experienced heightened volatility as physical supply conditions shifted across the region.
This week’s inventory figures from the U.S. Energy Information Administration added another critical supply indicator to the market outlook. The agency reported that commercial crude inventories increased by 95,000 barrels to a total of 428.9 million. This rise reflects data for the week ending August 21 and follows several weeks of closely watched stock fluctuations. After the inventory report, crude prices recovered part of Wednesday’s earlier losses. Nonetheless, both Brent and WTI closed below their previous session levels despite the partial rebound.
September supply adjustments influence market dynamics
Supply policies continue to shape the broader oil market landscape 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 reaffirmed their commitments to production compliance and addressing previous overproduction through compensation measures. The group announced its next monthly meeting for September 6, adding to the supply-related events on the market calendar.
Thursday’s trading saw Brent dip below $88 and WTI fall below $82 during early Asian market hours. Brent experienced a four-day losing streak, while WTI declined for a fifth day. Despite these drops, current prices remain above some of the levels seen earlier this year. Crude inventories in the United States stood at 428.9 million barrels after this week’s increase. As the week progressed, oil markets continued to monitor confirmed shipping developments, physical supply, and inventory data, shaping the ongoing price movements.