SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, extending a series of losses driven by ongoing developments around the Strait of Hormuz. Brent crude futures decreased by 41 cents, or 0.5%, reaching $87.43 a barrel at 0330 GMT. West Texas Intermediate crude futures also fell by 37 cents, or 0.5%, to $81.86 a barrel. Brent headed into its fourth consecutive daily decline, while WTI moved toward a fifth straight session of declines. Early Asian trading saw both benchmarks trading below their Wednesday settlement prices.
The decline followed a weaker trading session on Wednesday, when both crude benchmarks closed lower after notable intraday fluctuations. Brent decreased by 74 cents, or 0.84%, to $87.84 a barrel, while WTI ended 13 cents lower, or 0.16%, at $82.23. Earlier that day, Brent had fallen roughly 2%, with WTI dropping about 1.8%, and both had experienced declines exceeding 3% during the previous session. The downward trend continues a broader pullback that started earlier in the week for both contracts.
Negotiations involving Iran and Oman remained in focus because they concerned the Strait of Hormuz, a vital waterway connecting key Gulf oil producers with global markets and facilitating major energy shipments. Market participants also kept an eye on diplomatic efforts involving Qatar as regional talks persisted Thursday. The ongoing discussions coincided with oil prices extending a multi-session decline. The status of shipping access through Hormuz remained crucial for Middle East oil exports, with the strait situated between Iran and Oman at the Persian Gulf entrance.
Hormuz negotiations stay key for oil markets
The Strait of Hormuz remains one of the world’s most critical routes for crude oil and natural gas transport. Since regional tensions escalated earlier this year, restrictions on transit have disrupted normal energy flows from the Gulf. Alternative routes are only capable of handling part of the usual volume passing through the strait, directly influencing how much regional supply reaches international markets. Recent oil price movements have been volatile, reflecting shifts in physical supply conditions across the region.
This week’s inventory data from the U.S. Energy Information Administration provided an additional indicator of supply levels. The agency reported that commercial crude inventories increased by 95,000 barrels to 428.9 million, covering the week ending August 21, after several weeks of closely monitored stock changes. The inventory report prompted a partial recovery in crude prices from Wednesday’s earlier losses, yet both Brent and WTI still closed below their prior session levels.
September supply adjustments impact market outlook
Supply policies also played a role in shaping the broader oil market landscape ahead of September. OPEC+ previously approved a production adjustment of 188,000 barrels per day for seven member countries starting this month. The participating nations include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These countries reaffirmed their commitments to production conformity and addressing overproduction issues from earlier periods. The group has scheduled its next monthly meeting for September 6, adding a further supply-related event to the market calendar.
The decline on Thursday pushed Brent below $88 and WTI below $82 during early Asian trading, with Brent having fallen for four consecutive sessions and WTI for five. Despite recent losses, prices still remain above levels seen earlier this year. The U.S. crude inventory now stands at 428.9 million barrels following the latest weekly increase, as markets continue to follow shipping updates, physical supply conditions, and inventory reports through the week.