SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, extending a decline that has persisted over multiple sessions. Brent crude futures fell by 41 cents, or 0.5%, settling at $87.43 per barrel at 0330 GMT. Meanwhile, U.S. West Texas Intermediate crude decreased by 37 cents, or 0.5%, ending the session at $81.86 per barrel. Brent was on track for a fourth consecutive daily loss, while WTI was heading for its fifth straight decline. Market participants continued to observe developments influencing energy shipments through the Strait of Hormuz.
Both benchmarks had already closed lower on Wednesday after initially recovering from larger losses earlier in the trading day. Brent declined by 74 cents, or 0.84%, to $87.84 a barrel, and WTI finished 13 cents lower, or 0.16%, at $82.23. Earlier in the session, Brent had fallen approximately 2%, and WTI about 1.8%. The previous day, both contracts had declined more than 3%, intensifying downward pressure in early Asian trading.
Focus remained on diplomatic talks involving Iran and Oman, which addressed the situation around the Strait of Hormuz. Qatar was also engaged in related diplomatic efforts. This vital waterway connects the Persian Gulf with the Gulf of Oman and global shipping routes, transporting significant volumes of crude oil and energy products from Gulf producers. Any alterations in shipping access can directly impact physical oil flows, maintaining the Strait’s importance in daily crude market activity.
Strait of Hormuz remains central to market attention
As one of the world’s most critical pathways for international energy shipments, the Strait of Hormuz is vital to major Gulf exporters seeking to reach Asian and other buyers. Alternative pipelines are only capable of handling a fraction of the oil traditionally transported via the waterway. Recent regional tensions have kept shipping conditions under close watch. Fluctuations in oil prices reflect traders’ assessments of physical supply and transportation status, with volatility continuing through Thursday’s Asian session.
New U.S. inventory data offered additional insight into short-term oil supply dynamics. The U.S. Energy Information Administration reported a 95,000-barrel increase in commercial crude stocks last week, with inventories reaching 428.9 million barrels for the week ending August 21. This rise was smaller than anticipated prior to the report. Following the figures’ release, crude prices partly recovered from earlier Wednesday losses, although both Brent and WTI still closed below their previous settlement levels.
OPEC+ September output plan remains on the horizon
The broader market outlook also continues to include the upcoming OPEC+ supply adjustment, with seven member countries approving a cut of 188,000 barrels per day for September. These countries are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They reaffirmed their commitments regarding production compliance and compensation for past overproduction. The next scheduled meeting is set for September 6, maintaining its position as a key event on the global oil calendar.
Thursday’s early trading saw Brent dipping below $88 a barrel and WTI below $82, extending the week-long downward trend across both major crude benchmarks. The recent weekly increase in U.S. crude inventories, standing at 428.9 million barrels, remains a focus for traders. Market attention is centered on confirmed shipping developments, regional diplomatic negotiations, and physical supply conditions. Additionally, inventory levels and upcoming production adjustments continue to influence oil prices as the global energy markets approach the end of August.