SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, continuing a multi-day downward trend as markets reacted to ongoing developments around 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 fell by 37 cents, or 0.5%, settling at $81.86 per barrel. Brent faced its fourth consecutive daily drop, while WTI was nearing a fifth straight session of losses. During early Asian trading, both benchmarks remained below their Wednesday settlement levels.
This decline followed a weaker session on Wednesday, when both benchmarks closed lower after significant intraday swings. Brent decreased by 74 cents, or 0.84%, to $87.84 a barrel. WTI dropped 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 lost over 3% in the previous session. The ongoing decline signals a broader pullback that began earlier in the week across both markets.
Focus remains on negotiations involving Iran and Oman because of their implications for the Strait of Hormuz. This waterway connects key Gulf oil producers with the global market and is vital for energy shipments. Market watchers also observe diplomatic activities involving Qatar as regional talks continue Thursday. The discussions come amid a multi-session downturn in crude prices. Shipping through Hormuz remains crucial for Middle East oil exports, as the strait lies between Iran and Oman at the Persian Gulf’s entrance.
Hormuz diplomacy continues to influence oil markets
The Strait of Hormuz ranks among the world’s most critical routes for crude oil and natural gas shipments. Since regional tensions intensified this year, restrictions have disrupted normal energy flows from the Gulf. Alternative routes can only partially replace the volume usually passing through the strait. Shipping activity there directly impacts how much regional supply reaches global markets. Recently, oil prices have fluctuated within a volatile range due to changing physical supply conditions across the region.
This week, U.S. inventory data added a key supply indicator. The U.S. Energy Information Administration reported that commercial crude inventories increased by 95,000 barrels, reaching 428.9 million. This figure covers the week ending August 21 and follows several weeks of closely watched stock changes. After the inventory report, crude prices partially recovered from Wednesday’s earlier declines. Nonetheless, both Brent and WTI still closed below their previous levels.
September supply policies shape market outlook
Supply management also plays a role as markets prepare for September. OPEC+ previously approved a 188,000 barrel-per-day production cut for seven participating nations starting next month. The countries include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They reaffirmed their commitments to production limits and to addressing past overproduction. The group has scheduled its next monthly meeting for September 6, adding a further supply adjustment to the market calendar.
Thursday’s prices kept Brent below $88 and WTI below $82 during early Asian trading. Brent declined for four straight sessions, and WTI for five. Despite recent drops, prices remain above earlier-year levels. U.S. crude inventories after the latest weekly increase stood at 428.9 million barrels. As the week progresses, markets continue to monitor shipping developments, physical supply, and inventory data.