SINGAPORE / RankWire.AI / – Oil prices continued to decrease on Thursday, marking a prolonged downward trend as markets responded to developments surrounding the Strait of Hormuz. Brent crude futures declined by 41 cents, or 0.5%, reaching $87.43 per barrel at 0330 GMT. Meanwhile, West Texas Intermediate crude futures dipped by 37 cents, or 0.5%, to $81.86 per barrel. Brent is heading for its fourth consecutive daily decline, while WTI is approaching a fifth straight session of losses. These declines kept both benchmarks below their Wednesday settlement prices during early Asian market trading.
The decline was part of a weaker trading session on Wednesday, when both benchmarks closed lower after experiencing notable intraday fluctuations. Brent settled 74 cents lower, or 0.84%, at $87.84 per barrel, while WTI finished down 13 cents, or 0.16%, at $82.23. Earlier in the day, Brent had fallen approximately 2%, and WTI dropped about 1.8%. The previous session saw both contracts lose more than 3%. The ongoing slide reflects a broader market retreat that began earlier in the week across both benchmarks.
Key attention remained on negotiations involving Iran and Oman due to their relevance to the Strait of Hormuz, which links major Gulf oil producers to global markets and facilitates significant energy shipments. Market watchers also observed diplomatic activity involving Qatar as regional talks persisted Thursday. The ongoing discussions occurred amidst a continued decline in crude prices over multiple sessions. Shipping routes through Hormuz are a crucial factor in the export flow of Middle Eastern oil. The strait, located between Iran and Oman at the Persian Gulf entrance, remains a strategic choke point.
Hormuz negotiations continue to influence oil markets
The Strait of Hormuz stands as one of the globe’s most vital pathways for crude oil and natural gas transit. Since regional conflicts intensified earlier this year, restrictions on shipping traffic have disrupted normal energy flow from the Gulf region. Alternative routes are only capable of handling a fraction of the volume typically managed through Hormuz, directly impacting how much regional supply reaches international markets. Recently, oil prices have fluctuated within a volatile range, driven by shifts in physical supply conditions across the area.
Adding to the market’s outlook, the U.S. Energy Information Administration released inventory data showing a rise in U.S. crude stockpiles. The agency reported that commercial crude inventories increased by 95,000 barrels to a total of 428.9 million, covering the week ending August 21. This follows several weeks of closely monitored inventory fluctuations. After the release of this data, crude prices recovered some of their earlier Wednesday losses. Nevertheless, both Brent and WTI ended the trading session below their previous close levels.
Market factors include September supply adjustments
Supply policy considerations also shape the broader oil market landscape as September approaches. OPEC+ had previously approved a production adjustment of 188,000 barrels per day for seven participating nations starting in September. The countries involved include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These nations reaffirmed their commitments to production conformity and addressing overproduction from earlier periods. The group scheduled its next monthly gathering for September 6, adding another important event to the market calendar.
Thursday’s decline saw Brent trading 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 this, the current prices remain above some of the levels observed earlier this year. Crude inventories in the United States reached 428.9 million barrels after the latest weekly increase, as markets continued monitoring confirmed shipping developments, physical supply conditions, and stock data throughout the week.