SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, extending several days of declines amid ongoing developments surrounding the Strait of Hormuz. Brent crude futures decreased by 41 cents, or 0.5%, to $87.43 a barrel at 0330 GMT. West Texas Intermediate crude futures fell 37 cents, or 0.5%, reaching $81.86 a barrel. Brent is on track for a fourth consecutive daily drop, while WTI is approaching a fifth straight session of losses. Early Asian trading saw both benchmarks trading below their Wednesday settlement prices.
This decline followed a weaker session on Wednesday when both benchmarks closed lower after notable intraday volatility. Brent finished 74 cents lower, or 0.84%, at $87.84 per barrel. WTI declined by 13 cents, or 0.16%, ending at $82.23. Earlier that day, Brent had fallen approximately 2%, and WTI about 1.8%. Both contracts had also dropped over 3% during the previous session. These losses reflect a broader correction that started earlier in the week across both contracts.
Key focus in the markets remained on negotiations involving Iran and Oman, centered around the Strait of Hormuz. The waterway, which connects leading Gulf oil producers with global markets, handles a significant share of energy shipments. Additionally, traders monitored diplomatic efforts involving Qatar, as regional talks continued Thursday. The discussions come amid persistent declines in crude prices over multiple sessions. The flow of Middle Eastern oil exports is heavily influenced by access through Hormuz, a strategic passage between Iran and Oman at the Persian Gulf entrance.
Hormuz talks continue to influence the oil market
As one of the world’s most vital routes for crude oil and natural gas, the Strait of Hormuz has experienced disruptions in recent months due to regional tensions. These restrictions have hampered normal energy flows from the Gulf, with alternative routes only able to handle part of the usual volume. Shipping activity in the strait has a direct impact on how much regional supply reaches international markets. Oil prices have shown increased volatility, reflecting changing physical supply conditions across the region.
Adding to the supply picture, the U.S. Energy Information Administration provided fresh data this week, reporting that commercial crude inventories rose by 95,000 barrels to 428.9 million. This figure pertains to the week ending August 21 and follows several weeks of closely watched stock fluctuations. After the inventory report, crude prices recovered some of Wednesday’s early losses. Nonetheless, both Brent and WTI closed below their previous session levels, indicating persistent pressure on prices.
September supply policy remains a market consideration
Market dynamics are also influenced by upcoming supply policies ahead of September. OPEC+ has already approved a production adjustment of 188,000 barrels per day 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 maintaining production conformity and compensating for previous overproduction. The group is scheduled to hold its next monthly meeting on September 6, adding another scheduled event to the market’s calendar.
Thursday’s downward movement kept Brent below $88 and WTI under $82 during early Asian trading hours. Brent has experienced four consecutive declines, while WTI has fallen for five straight sessions. Despite recent drops, prices remain higher than some levels seen earlier this year. The U.S. crude inventory now stands at 428.9 million barrels following the latest weekly increase. Oil markets continue to monitor confirmed shipping developments, physical supply, and inventory data as the week unfolds.