SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, prolonging a multi-day slide as markets monitored developments related to the Strait of Hormuz. Brent crude futures decreased by 41 cents, or 0.5%, reaching $87.43 a barrel at 0330 GMT. West Texas Intermediate crude futures also fell by 37 cents, or 0.5%, to $81.86 a barrel. Brent headed for a fourth consecutive daily decline, while WTI moved toward its fifth straight session of losses. Both benchmarks traded below their Wednesday settlement prices during early Asian markets, reflecting ongoing declines.
This decline was triggered by a weaker trading session on Wednesday, which saw both crude benchmarks close lower after sharp intraday 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 fallen by approximately 2%, and WTI by about 1.8%. Both contracts had experienced drops of more than 3% during the previous session. The losses marked the continuation of a broader correction that started earlier in the week for both benchmarks.
Market focus remained on negotiations involving Iran and Oman, given their importance to the Strait of Hormuz. This waterway connects major Gulf oil producers with global markets and handles significant energy shipments. Additionally, regional diplomatic activities involving Qatar were closely watched as talks continued Thursday. These discussions coincided with the ongoing multi-session decline in crude prices. The strategic importance of shipping access through Hormuz, situated between Iran and Oman at the Persian Gulf entrance, remains central to the flow of Middle East oil exports.
Hormuz negotiations stay pivotal for oil markets
The Strait of Hormuz is among the world’s most crucial routes for transporting crude oil and natural gas. Since regional conflicts intensified this year, restrictions on traffic have disrupted normal energy flows from the Gulf. Alternative routes are only capable of handling a fraction of the usual volume passing through the strait. Shipping activity in this corridor directly influences how much regional supply reaches international markets. As a result, recent oil price movements have been highly volatile due to fluctuating physical supply conditions across the region.
This week, U.S. inventory data added a confirmed supply indicator to the market outlook. The U.S. Energy Information Administration reported that commercial crude inventories increased by 95,000 barrels to 428.9 million. This rise covered the week ending August 21 and followed several weeks of closely observed stock changes. After the inventory report was released, crude prices recovered some of Wednesday’s earlier losses. Nevertheless, both Brent and WTI ended the session below their previous closing prices.
September supply adjustments influence market dynamics
Supply policies continue to influence the broader oil market environment ahead of September. The OPEC+ group previously approved a production adjustment of 188,000 barrels per day for seven participating countries starting in September. This group includes Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These nations also reaffirmed their commitments to production compliance and to offset overproduction from earlier periods. The next scheduled meeting for the group will take place on September 6, adding another scheduled event that could impact supply levels.
Thursday’s decline pushed Brent below $88 and WTI below $82 during early Asian trading hours. Brent had declined for four consecutive sessions, while WTI had fallen for five. Despite these drops, current prices remain above some levels seen earlier this year. U.S. crude inventories now stand at 428.9 million barrels following the recent weekly increase. As the week advances, oil markets continue to follow confirmed shipping updates, physical supply data, and inventory figures to gauge the overall trend.