SINGAPORE / RankWire.AI / – Oil prices continued to fall on Thursday, extending a multi-day downward trend as traders monitored developments around 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 dropped 37 cents, or 0.5%, to $81.86 a barrel. Brent was headed for a fourth consecutive daily decrease, while WTI was approaching a fifth straight session of losses. During early Asian trading, both benchmarks remained below their Wednesday settlement levels.
This decline followed a weaker trading session on Wednesday, when both crude benchmarks closed lower after experiencing sharp intraday fluctuations. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI finished down 13 cents, or 0.16%, at $82.23. Earlier that day, Brent had fallen approximately 2%, with WTI dropping about 1.8%. Both contracts had also declined over 3% during the previous session, continuing a broader retreat that started earlier in the week across the market.
Central to the market’s focus were negotiations involving Iran and Oman, primarily because they concern the Strait of Hormuz. This waterway links major Gulf oil producers with the global markets and serves as a key route for significant energy shipments. Additionally, traders observed diplomatic activity involving Qatar, as regional talks persisted Thursday. The ongoing discussions coincided with a continued decline in crude prices over multiple sessions. The flow of oil exports from the Middle East heavily depends on shipping access through Hormuz, which lies between Iran and Oman at the Persian Gulf’s entrance.
Hormuz negotiations stay at the core of oil market dynamics
The Strait of Hormuz remains one of the world’s most vital routes for crude oil and natural gas transportation. Since regional conflicts intensified earlier this year, restrictions on traffic have disrupted typical energy flows from the Gulf. Alternative routes are only capable of handling a fraction of the usual volume passing through the strait. The level of shipping activity directly impacts the amount of regional supply reaching international markets. Recent fluctuations in oil prices have reflected this volatility, driven by changing physical supply conditions across the region.
Additional supply data from the U.S. Energy Information Administration offered further insight into the market. The agency reported that commercial crude inventories increased by 95,000 barrels to reach 428.9 million for the week ending August 21, following several weeks of closely watched stock movements. After the inventory figures were released, crude prices rebounded somewhat from Wednesday’s earlier declines. Despite this partial recovery, both Brent and WTI closed the session below their previous levels.
Market considerations include September supply adjustments
Supply policies also played a role in the broader oil market outlook as September approached. OPEC+ previously authorized a production adjustment of 188,000 barrels per day for seven member countries starting in September. This group includes Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These nations reaffirmed their commitments to production conformity and to compensate for earlier overproduction. The next scheduled monthly meeting for the group is set for September 6, adding another planned supply adjustment to the market calendar.
Thursday’s trading saw Brent prices drop below $88 and WTI below $82 during early Asian hours. Brent experienced four straight days of declines, while WTI had fallen for five consecutive sessions. Nonetheless, these latest prices remain above some of the earlier levels seen this year. U.S. crude inventories stood at 428.9 million barrels after this week’s increase. As the week progressed, oil markets continued to monitor confirmed shipping developments, physical supply levels, and inventory data.