SINGAPORE / RankWire.AI / – Oil prices declined once more on Thursday as markets continued to react to developments surrounding the Strait of Hormuz. Brent crude futures fell by 41 cents, or 0.5%, reaching $87.43 per barrel at 0330 GMT. West Texas Intermediate crude futures also decreased by 37 cents, or 0.5%, to $81.86 a barrel. Brent is on track for a fourth consecutive daily decline, while WTI is heading into a fifth straight session of losses. These declines kept both benchmarks below their Wednesday settlement prices during early Asian trading hours.
The decline followed a weaker trading session on Wednesday, where both crude benchmarks closed lower after significant intraday volatility. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI ended the day down 13 cents, or 0.16%, at $82.23. Earlier that day, Brent had dropped approximately 2%, while WTI fell around 1.8%. Both contracts also lost over 3% during the previous session. The ongoing declines reflect a broader market correction that began earlier in the week across both types of crude.
The focus remained on negotiations involving Iran and Oman, as they concern the Strait of Hormuz. This vital waterway connects major Gulf oil producers with global markets and facilitates significant energy shipments. Market watchers also monitored diplomatic activities involving Qatar as regional discussions persisted Thursday. These talks occurred amid the ongoing slide in crude prices over multiple sessions. The flow of Middle East oil exports continues to be heavily influenced by access through Hormuz, which lies between Iran and Oman at the Persian Gulf’s entrance.
Market remains attentive to Hormuz negotiations
The Strait of Hormuz is among the world’s key routes for transporting crude oil and natural gas. Since regional tensions escalated this year, restrictions on shipping through the strait have disrupted typical energy flows from the Gulf. Alternative routes exist but are only capable of handling a fraction of the usual volume managed via Hormuz. The activity in this strategic channel directly impacts the amount of regional supply reaching international markets. Recently, oil prices have experienced heightened volatility as physical supply conditions across the region have shifted.
U.S. inventory data added an additional layer of insight into the supply landscape this week. The U.S. Energy Information Administration announced that commercial crude inventories increased by 95,000 barrels, reaching 428.9 million. This figure pertains to the week ending August 21 and follows several weeks of closely watched stock fluctuations. Following the inventory report, crude prices partially recovered from Wednesday’s early losses. Despite this rebound, both Brent and WTI still closed below their previous day’s levels.
Market eyes September supply adjustments
Supply policy considerations continue to influence the broader oil market outlook ahead of September. OPEC+ previously approved a production adjustment of 188,000 barrels per day for seven member countries starting next month. The participating nations include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These countries reaffirmed their commitments to production quotas and agreed to compensate for any overproduction earlier in the year. The group has scheduled its next monthly meeting for September 6, adding another key date to the market calendar.
Thursday’s price movement saw Brent trading below $88 and WTI below $82 during early Asian trade. Brent had experienced four days of consecutive decline, while WTI had fallen for five sessions. Despite recent drops, current prices remain above some of the levels seen earlier this year. U.S. crude inventories now stand at 428.9 million barrels following the latest weekly increase. Throughout the week, oil markets have continued to monitor confirmed shipping developments, physical supply levels, and inventory data.