SINGAPORE / RankWire.AI / – Oil prices experienced another decrease on Thursday, continuing a downward trend that has persisted over several 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%, closing at $81.86 a barrel. Brent was on track for a fourth consecutive daily decline, while WTI was heading for its fifth straight drop. Market participants kept a close eye on developments impacting energy shipments through the Strait of Hormuz.
Both benchmarks had already closed lower on Wednesday after bouncing back from deeper declines earlier in the session. 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 in the day, Brent had fallen approximately 2%, with WTI dropping about 1.8%. Both contracts had also lost more than 3% in the previous session. This recent movement continued to exert pressure on crude prices during early Asian trading hours.
Diplomatic activity centered around Iran and Oman continued to draw attention, as discussions focused on the conditions surrounding the Strait of Hormuz. Diplomatic efforts also involved Qatar in connection with the talks. This narrow waterway connects the Persian Gulf with the Gulf of Oman and serves as a critical route for global shipping. It transports significant volumes of crude oil and energy products from Gulf producers. Any alterations in shipping access can have a direct influence on physical oil flows, making the strait a key factor in daily crude market trading.
Strait of Hormuz remains a central focus for market participants
As one of the world’s most vital channels for international energy shipments, the Strait of Hormuz is crucial for Gulf exporters who depend on it to reach buyers across Asia and beyond. Alternative pipelines are only capable of handling a portion of the oil typically passing through this route. Recent regional tensions have kept shipping conditions in this area under close scrutiny. Traders have experienced notable daily price swings as they evaluate confirmed changes in physical supply and transportation conditions. These fluctuations persisted through Thursday’s Asian trading session.
The latest U.S. inventory data offered additional insight into short-term oil supply. The U.S. Energy Information Administration reported a weekly increase of 95,000 barrels in commercial crude stocks, which reached 428.9 million barrels for the week ending August 21. This rise was smaller than what markets had anticipated prior to the release. Following the data, crude prices regained some ground lost earlier on Wednesday, though both Brent and WTI still closed below their previous settlement levels despite the partial recovery.
OPEC+’s September supply adjustment remains on the agenda
The broader market outlook continues to include discussions about OPEC+ supply policies ahead of September. Seven member countries approved a production adjustment of 188,000 barrels per day for next month. The group comprises Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They also reaffirmed their commitments to production compliance and compensation for past overproduction. The next scheduled monthly meeting is set for September 6, maintaining its position on the global oil calendar.
Thursday’s early trading saw Brent trading below $88 a barrel and WTI below $82. This decline extended the week’s overall retreat for both key benchmarks. After the latest weekly inventory figures, which showed crude stocks at 428.9 million barrels, market focus remained on shipping developments, diplomatic talks in the region, and physical supply fundamentals. Inventory levels and upcoming production adjustments continued to influence oil prices as the global energy markets progress toward August’s end.