SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, marking a fifth straight day of declines as traders monitored ongoing developments near the Strait of Hormuz. At 0330 GMT, Brent crude futures fell by 41 cents, or 0.5%, reaching $87.43 per barrel. Meanwhile, West Texas Intermediate crude futures decreased by 37 cents, or 0.5%, to $81.86 per barrel. Both benchmarks are headed for their fourth and fifth consecutive daily drops, respectively, remaining below their Wednesday settlement levels in early Asian trading.
The trend followed a weaker 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 per barrel, while WTI declined by 13 cents, or 0.16%, ending at $82.23. Earlier that day, Brent had fallen around 2%, and WTI had dropped approximately 1.8%. The previous session also saw declines of over 3% for both contracts. These losses are part of a broader pullback that has been ongoing since earlier in the week across the oil markets.
Focus remained on negotiations involving Iran and Oman, as they pertain to the Strait of Hormuz. This vital waterway connects key Gulf oil producers with global markets and facilitates substantial energy shipments. Traders also observed diplomatic activities surrounding Qatar amid regional talks continuing on Thursday. The ongoing discussions coincided with persistent declines in crude prices over multiple sessions. The security of shipping routes through Hormuz continues to be a critical factor influencing the flow of Middle Eastern oil exports, as the strait lies between Iran and Oman at the Gulf’s entrance.
Hormuz Negotiations Keep Market Focus on Oil Supply
The Strait of Hormuz remains one of the most strategic routes for the transportation of crude oil and natural gas worldwide. Since regional tensions escalated this year, restrictions on shipping have disrupted typical energy flows from the Gulf. Alternative routes are only capable of carrying a fraction of the usual volume passing through the strait. The level of shipping activity there directly influences how much regional supply reaches international markets. Recently, oil prices have experienced heightened volatility as physical supply conditions across the region have shifted.
This week, U.S. inventory reports added a concrete measure of supply to the overall market assessment. According to the U.S. Energy Information Administration, commercial crude stocks increased by 95,000 barrels to 428.9 million for the week ending August 21, following several weeks of closely monitored inventory changes. Following the release of this data, crude prices recovered part of Wednesday’s earlier losses, but both Brent and WTI still finished the session below their previous closing prices.
September Supply Adjustments Shape Market Outlook
Supply policies also continue to influence market sentiment ahead of September. OPEC+ has 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 regarding production compliance and compensation for past overproduction. Their next scheduled meeting is set for September 6, further adding to the upcoming supply adjustments in the market.
Thursday’s decline saw Brent trading below $88 and WTI below $82 during early Asian market hours. Brent has fallen for four consecutive days, and WTI for five, although current prices remain above some levels seen earlier this year. U.S. crude inventories stand at 428.9 million barrels following the latest weekly increase. As the week progresses, markets continue to analyze shipping confirmations, physical supply, and inventory data to gauge the overall supply-demand balance.