SINGAPORE / RankWire.AI / – Oil prices declined once more on Thursday, prolonging a multi-day slide as market attention remained focused on developments around the Strait of Hormuz. Brent crude futures decreased by 41 cents, or 0.5%, reaching $87.43 per barrel at 0330 GMT. Meanwhile, West Texas Intermediate crude futures fell 37 cents, or 0.5%, to $81.86 per barrel. Brent is on track for a fourth consecutive daily decline, while WTI edges toward its fifth day of losses. These drops kept both benchmarks below their Wednesday settlement levels during early Asian trading.
The decline followed a weaker trading session on Wednesday, during which both crude benchmarks closed lower after experiencing sharp intra-day fluctuations. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI finished down 13 cents, or 0.16%, at $82.23. Earlier that day, Brent had dropped nearly 2%, with WTI falling approximately 1.8%. Both contracts had also lost over 3% in the previous session. The ongoing losses are part of a broader pullback that started earlier in the week across both benchmarks.
Negotiations involving Iran and Oman remained a key focus for the markets as they related to the Strait of Hormuz. This vital waterway connects major Gulf oil producers with global markets and handles significant energy shipments. Additionally, traders observed diplomatic activities involving Qatar as regional discussions persisted Thursday. These talks come amid the extended decline in crude prices over multiple sessions. The ability to access shipping routes through Hormuz continues to be crucial for the flow of oil exports from the Middle East, with the strait situated between Iran and Oman at the Persian Gulf’s entrance.
Hormuz negotiations continue to influence the oil market
The Strait of Hormuz remains one of the globe’s most critical corridors for crude oil and natural gas shipments. Disruptions to traffic there have impacted normal energy flows from the Gulf region since the escalation of regional conflict earlier this year. Alternative routes can only partially replace the volume typically carried through the strait. Shipping activity directly influences the amount of regional supply reaching international markets. Recently, oil prices have oscillated within a volatile range as physical supply conditions across the region shifted.
This week, U.S. inventory data offered an additional indicator of supply status. The U.S. Energy Information Administration reported that commercial crude inventories increased by 95,000 barrels to 428.9 million. This rise pertains to the week ending August 21 and follows several weeks of closely monitored stock changes. Following the inventory release, crude prices recovered some of Wednesday’s earlier losses. However, both Brent and WTI still closed below their previous session levels.
Market factors include September supply adjustments
Supply policy remained a significant aspect of the overall oil market backdrop ahead of September. Previously, OPEC+ approved a 188,000 barrel-per-day production adjustment for seven participating nations starting in September. The countries involved are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These nations reaffirmed their commitments to production conformity and compensation for earlier overproduction. The group scheduled its next monthly meeting for September 6, adding another planned supply adjustment to the market’s calendar.
Thursday’s decline pushed Brent below $88 and WTI below $82 during early Asian trading hours. Brent has now fallen for four consecutive sessions, while WTI has declined for five. Despite the recent drops, prices remain above levels seen earlier this year. U.S. crude inventories currently stand at 428.9 million barrels after the latest weekly increase. As the week progresses, oil markets continue to follow developments related to confirmed shipping, physical supply, and inventory data.