SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, marking the continuation of a multi-session decline. Brent crude futures dipped by 41 cents, or 0.5%, to settle at $87.43 per barrel by 0330 GMT. Meanwhile, U.S. West Texas Intermediate crude decreased by 37 cents, or 0.5%, reaching $81.86 a barrel. Brent was on track for a fourth consecutive daily decrease, and WTI was heading for its fifth straight decline. Investors kept a close watch on developments impacting energy shipments passing through the Strait of Hormuz.
Both benchmarks had already closed lower on Wednesday after partial recovery from earlier, sharper losses within the session. Brent settled 74 cents lower, or 0.84%, at $87.84 a barrel. WTI finished 13 cents down, or 0.16%, at $82.23. Earlier in the day, Brent had dropped about 2%, with WTI decreasing approximately 1.8%. Both contracts experienced declines exceeding 3% in the previous session. These movements contributed to sustained downward pressure on crude prices during early Asian trading hours.
Diplomatic discussions involving Iran and Oman remained a focal point, as they addressed issues related to the Strait of Hormuz. Qatar was also engaged in diplomatic efforts connected to these talks. The strait, which links the Persian Gulf to the Gulf of Oman and vital shipping routes, transports significant volumes of crude oil and energy products from Gulf producers. Any alterations in shipping access can directly influence physical oil flows, underscoring the importance of the waterway in daily crude market activity.
Strategic importance of the Strait of Hormuz persists in market focus
The Strait of Hormuz is among the most critical channels for global energy trade. Major Gulf exporters depend on this route to supply Asian markets and other regions. Alternative pipelines only partially compensate for the volume moved through the waterway. Ongoing regional tensions have kept shipping conditions in the area under close scrutiny, with oil prices experiencing notable daily fluctuations as traders evaluate confirmed shifts in physical supply and transportation logistics. These dynamics persisted through Thursday’s Asian trading session.
Latest U.S. inventory data offered further insight into short-term oil supply levels. The U.S. Energy Information Administration reported an increase of 95,000 barrels in commercial crude stocks last week, bringing inventories to 428.9 million barrels for the week ending August 21. This rise was smaller than market expectations prior to the release. Following the report, crude prices recovered some of their earlier losses from Wednesday. Despite this, Brent and WTI still closed below their previous settlement prices.
September OPEC+ supply adjustment remains a market consideration
Ahead of September, OPEC+’s supply policies continue to influence market sentiment. Seven member countries approved a production cut of 188,000 barrels per day for the upcoming month. This group includes Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They also reaffirmed their commitment to compliance and measures to offset previous overproduction. Their next scheduled meeting is set for September 6, maintaining a key event on the global oil calendar.
Thursday’s early trading saw Brent dip below $88 a barrel and WTI drop below $82. The declines extended a week-long downward trend for both benchmarks. After the latest weekly figures showed U.S. crude inventories at 428.9 million barrels, market focus remained on regional diplomatic developments, physical supply issues, and scheduled production adjustments. These factors continued to drive oil prices as the global energy markets approached the close of August.