SINGAPORE / RankWire.AI / – Oil prices declined once again Thursday, extending a multi-day downward trend amid ongoing developments around the Strait of Hormuz. Brent crude futures dropped 41 cents, or 0.5%, to $87.43 a barrel at 0330 GMT. West Texas Intermediate crude futures fell 37 cents, or 0.5%, to $81.86 a barrel. Brent is heading for a fourth straight daily loss, while WTI approaches a fifth consecutive session of declines. Early Asian trading saw both benchmarks trading below their Wednesday settlement levels.
This decline followed a weaker trading session on Wednesday, when both benchmarks finished lower after sharp intraday swings. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI closed down 13 cents, or 0.16%, at $82.23. Earlier that day, Brent had fallen about 2%, and WTI roughly 1.8%. Both contracts had lost more than 3% during the previous session. The current losses continue a broader correction that began earlier this week across both markets.
Focus remains on negotiations involving Iran and Oman, as they relate to the Strait of Hormuz. This vital waterway connects Gulf oil producers with global markets. It also handles significant energy shipments. Market watchers are paying attention to diplomatic efforts involving Qatar as regional talks continue Thursday. These discussions come amid ongoing crude price declines across multiple sessions. Shipping access through Hormuz is crucial for Middle Eastern oil exports. The strait is located between Iran and Oman, at the Persian Gulf entrance.
Hormuz negotiations stay central to oil trading
The Strait of Hormuz is one of the world’s top routes for crude oil and natural gas shipments. Since regional tensions escalated this year, restrictions have disrupted normal energy flows from the Gulf. Alternative routes can only handle part of the usual volume passing through Hormuz. Shipping activity there impacts how much regional supply reaches international markets. Recently, oil prices have been quite volatile as regional physical supply conditions shifted.
U.S. inventory data provided another key supply indicator this week. The U.S. Energy Information Administration reported that commercial crude inventories increased by 95,000 barrels to 428.9 million. This covers the week ending August 21 and follows several weeks of closely watched stock changes. After the inventory report, crude prices recovered some of Wednesday’s earlier losses. Despite that, both Brent and WTI finished the session below their previous closes.
September supply policy impacts market outlook
Supply policy also influences the broader oil market ahead of September. OPEC+ previously agreed on a 188,000 barrel-per-day production cut for seven member countries starting this month. The participating nations are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These countries reaffirmed their commitments to production targets and addressing past overproduction. The next OPEC+ monthly meeting is scheduled for September 6, adding another scheduled supply adjustment to the market calendar.
On Thursday, prices declined further, with Brent falling below $88 and WTI below $82 during early Asian trading. Brent has declined for four straight sessions, while WTI has fallen for five. Despite the recent drops, prices remain higher than some earlier periods this year. Crude inventories in the U.S. stand at 428.9 million barrels after the latest weekly increase. The markets continue to monitor shipping developments, physical supplies, and inventory reports as the week unfolds.