SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, extending a multi-day downward trend as traders monitored developments surrounding the Strait of Hormuz. Brent crude futures decreased by 41 cents, or 0.5%, reaching $87.43 per barrel at 0330 GMT. West Texas Intermediate crude futures dropped 37 cents, or 0.5%, to $81.86 a barrel. Brent was headed for a fourth consecutive daily drop, while WTI was approaching a fifth straight session of losses. During early Asian trading, both benchmarks remained below their Wednesday settlement levels.
This movement followed a weaker session on Wednesday, when both benchmarks closed lower after significant intraday fluctuations. Brent finished 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 approximately 2%, with WTI dropping around 1.8%. Both contracts also lost more than 3% during the previous session. These declines marked the continuation of a broader retreat that started earlier in the week across both benchmarks.
The focus remained on negotiations involving Iran and Oman, as they concerned the crucial Strait of Hormuz. This waterway links key Gulf oil producers with international markets and transports considerable energy shipments. Market observers also tracked diplomatic activity involving Qatar as regional talks persisted on Thursday. The discussions took place amid a continued multi-session slide in crude prices. Access through Hormuz remains vital for the flow of Middle Eastern oil exports, with the strait situated between Iran and Oman at the entrance to the Persian Gulf.
Hormuz negotiations continue to influence oil trading
The Strait of Hormuz is among the world’s most significant routes for crude oil and natural gas transportation. Since regional conflicts intensified this year, restrictions have disrupted normal energy flows from the Gulf, with alternative routes only capable of handling a portion of the usual volume. Shipping activity there directly impacts how much regional supply reaches global markets. Recently, oil prices have fluctuated within a volatile range as physical supply conditions across the region shifted.
This week’s market outlook was further clarified by U.S. inventory data. The U.S. Energy Information Administration reported that commercial crude inventories increased by 95,000 barrels to a total of 428.9 million. The data covered the week ending August 21 and followed several weeks of closely monitored stock movements. Following the inventory report, oil prices recovered some of Wednesday’s earlier losses. Despite this partial rebound, both Brent and WTI closed below their previous session levels.
Supply policy considerations shape the market outlook for September
Ahead of September, supply policies remained a key element influencing the broader oil market. OPEC+ had previously approved a 188,000 barrel-per-day production adjustment for seven participating nations starting in that month. The nations involved—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman—also reaffirmed their commitments to production conformity and measures to compensate for earlier overproduction. The group scheduled its next monthly meeting for September 6, adding another scheduled supply adjustment to the market’s calendar.
Thursday’s price decline pushed Brent below $88 and WTI below $82 in early Asian trading. Brent has fallen for four consecutive sessions, while WTI has declined during five. Nonetheless, these prices remain above levels observed earlier this year. U.S. crude inventories are currently at 428.9 million barrels following the latest weekly increase. As the week develops, oil markets continue to monitor confirmed shipping developments, physical supply, and inventory figures.