SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, marking a prolonged decline that has persisted over several trading sessions. At 0330 GMT, Brent crude futures decreased by 41 cents, or 0.5%, settling at $87.43 per barrel, while U.S. West Texas Intermediate crude declined 37 cents, or 0.5%, to $81.86 per barrel. Brent was on track for a fourth straight day of losses, and WTI was approaching a fifth consecutive decline, as traders maintained close watch on developments influencing energy shipments through the Strait of Hormuz.
Both benchmarks had already experienced declines on Wednesday after bouncing back from more substantial losses earlier in the session. Brent closed 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 fallen nearly 2%, and WTI around 1.8%, with both also losing more than 3% during the previous session. This recent movement kept crude oil prices under pressure during early trading hours in Asia.
Diplomatic activity surrounding Iran and Oman remained a key focus as negotiations centered on conditions near the Strait of Hormuz, with Qatar also involved in related diplomatic efforts. The strait, which connects the Persian Gulf with the Gulf of Oman and vital global shipping routes, transports significant volumes of crude oil and energy products from Gulf producers. Any alterations in shipping access directly impact physical oil flows, highlighting the strategic importance of this waterway in daily crude market trading.
Hormuz Strait continues to influence market dynamics
Recognized as one of the world’s most critical channels for international energy shipments, the Strait of Hormuz is vital for major Gulf exporters who depend on it to deliver oil to buyers across Asia and beyond. Alternative pipelines are capable of handling only a portion of the volume typically moved through this route, and recent regional tensions have kept shipping conditions under close scrutiny. As traders evaluate confirmed changes in physical supply and transportation logistics, crude prices have experienced sharp fluctuations on a daily basis, and these movements persisted through Thursday’s Asian trading session.
In addition, fresh data from U.S. inventories offered insights into near-term supply levels. The U.S. Energy Information Administration reported an increase of 95,000 barrels in commercial crude stocks last week, bringing total inventories to 428.9 million barrels for the week ending August 21. Despite expectations that had predicted a larger increase, the figures caused crude prices to partially recover from earlier declines on Wednesday. Still, both Brent and WTI closed below their prior settlement levels after the release of these data.
OPEC+ confirms September supply adjustments in focus
Ahead of September, the broader market outlook remains influenced by OPEC+ policies, with seven member countries approving a production reduction of 188,000 barrels per day for the upcoming month. The group comprises Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, all reaffirming their commitments to adherence and compensating for previous overproduction. The next scheduled meeting, set for September 6, continues to be a key event on the global oil market calendar. This anticipation contributes to the ongoing market focus on supply adjustments and potential impacts on prices.
The early decline on Thursday pushed Brent below $88 a barrel and WTI below $82, extending the downward trend observed this week. Despite the recent gains, U.S. crude inventories remained at 428.9 million barrels after the latest weekly increase. Market participants continue to prioritize developments in shipping, regional diplomacy, and physical supply conditions, alongside inventory levels and upcoming production decisions, as these factors collectively influence oil prices as August draws to a close.