SINGAPORE / RankWire.AI / – Oil prices declined once again Thursday, continuing a downward trend that has persisted over several trading sessions. Brent crude futures decreased by 41 cents, or 0.5%, reaching $87.43 a barrel at 0330 GMT. U.S. West Texas Intermediate crude also fell by 37 cents, or 0.5%, to settle at $81.86 a barrel. Brent was on track for a fourth consecutive daily decrease, while WTI was heading for its fifth straight decline. Market participants continued to observe updates related to energy shipments passing through the Strait of Hormuz.
Both benchmarks had previously closed lower on Wednesday after recovering from sharper declines earlier in the day. Brent ended 74 cents lower, or 0.84%, at $87.84 per barrel. WTI finished 13 cents down, or 0.16%, at $82.23. Earlier, Brent had dropped approximately 2%, and WTI about 1.8%. Both contracts also experienced losses exceeding 3% in the prior session. These movements kept crude prices under pressure during early Asian trading hours.
Focus remained on regional diplomatic talks involving Iran and Oman, as discussions centered around the situation surrounding the Strait of Hormuz. Qatar was also engaged in diplomatic efforts related to the negotiations. The strait connects the Persian Gulf with the Gulf of Oman and serves as a vital route for global shipping. It transports significant volumes of crude oil and energy products from Gulf producers, making any shifts in shipping access directly impactful on physical oil flows. As a result, the waterway continues to be a critical element in daily crude market trading.
Hormuz Strait Continues to Drive Market Dynamics
The Strait of Hormuz is recognized as one of the world’s most crucial pathways for international energy shipments. Key Gulf exporters depend heavily on this route to deliver oil to markets across Asia and beyond. Alternative pipelines are capable of handling only a portion of the volume typically transported through the waterway. Recent regional tensions have kept shipping conditions in the area under close watch. As traders evaluate confirmed changes in physical supply and transportation, oil prices have experienced notable fluctuations daily. These dynamics persisted into Thursday’s Asian trading session.
The latest U.S. inventory report added to the ongoing assessment of short-term oil supply. The U.S. Energy Information Administration indicated that commercial crude stocks increased by 95,000 barrels last week, reaching a total of 428.9 million barrels for the week ending August 21. This increase was below market expectations prior to the report’s release. Following the data, crude prices rebounded partially from earlier Wednesday losses, though both Brent and WTI still closed below their prior settlement prices despite the recovery.
OPEC+ Production Adjustments in September Remain in Focus
The market also maintained attention on the upcoming OPEC+ supply policy decisions ahead of September. Seven member countries approved a production reduction of 188,000 barrels per day for the following month. These nations include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. Additionally, they reaffirmed commitments related to production compliance and measures to address past overproduction. The next scheduled meeting for participating members is set for September 6, and it remains a key event on the global oil calendar.
Thursday’s early trading saw Brent dip below $88 a barrel and WTI fall under $82. The declines contributed to a week-long retreat for both major benchmarks. After the latest weekly inventory figures, which showed crude stocks at 428.9 million barrels, market focus shifted toward confirmed shipping developments, ongoing diplomatic discussions in the region, and physical supply conditions. Monitoring inventory levels and upcoming production adjustments continues to influence oil prices as August nears its end, shaping the course of global energy markets.