SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, extending a multi-day downward trend as traders monitored developments related to 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 heading toward a fourth consecutive daily decline, while WTI approached a fifth session of losses, with both benchmarks trading below their Wednesday settlement levels in early Asian markets.
Following a weaker session on Wednesday, where both crude benchmarks closed lower after significant intraday fluctuations, the decline persisted. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel, while WTI finished down 13 cents, or 0.16%, at $82.23. Earlier that day, Brent had dropped about 2%, and WTI around 1.8%. Both contracts experienced declines of more than 3% in the prior session. This ongoing downturn reflected a broader retracement that began earlier in the week for both benchmarks.
Market focus remained on negotiations involving Iran and Oman, mainly because they concern the Strait of Hormuz. This crucial waterway connects major Gulf oil producers with global markets and facilitates significant energy shipments. Diplomatic activity involving Qatar was also closely watched as regional talks continued Thursday. The discussions coincided with crude prices extending their multi-session decline, with shipping access through Hormuz remaining a vital factor in Middle Eastern oil exports. The strait, situated between Iran and Oman at the Persian Gulf entrance, continues to influence market dynamics.
Hormuz negotiations remain key to oil markets
The Strait of Hormuz is one of the world’s most critical routes for the transit of crude oil and natural gas. Since regional conflicts intensified this year, restrictions on traffic through the strait have disrupted usual energy flows from the Gulf, with alternative routes only capable of handling a portion of the normal volume. Shipping activity there directly impacts how much regional supply reaches international markets. Oil prices have recently fluctuated within a volatile range, driven by changing physical supply conditions across the region.
This week’s market outlook was further influenced by U.S. inventory data, providing an additional measure of supply. The U.S. Energy Information Administration reported that commercial crude inventories increased by 95,000 barrels to 428.9 million, covering the week ending August 21, after several weeks of closely watched stock movements. Following the inventory report, crude prices regained some of Wednesday’s earlier losses, but both Brent and WTI still closed below their prior levels during the session.
September supply adjustments shape the market
Supply policy remained a key element in the broader oil market landscape ahead of September. Previously, OPEC+ approved a 188,000 barrel-per-day production adjustment starting that month for seven member countries—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 an additional supply adjustment to the market calendar.
Thursday’s decline pushed Brent below $88 and WTI below $82 in early Asian trading. Brent had fallen four days in a row, with WTI declining for five. Despite this, prices remained above levels seen earlier this year. After the latest weekly increase, U.S. crude inventories stood at 428.9 million barrels. As the week advanced, markets continued to monitor shipping developments, physical supply, and inventory data closely.