SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, following several sessions of losses. Brent crude futures decreased by 41 cents, or 0.5%, reaching $87.43 a barrel at 0330 GMT. Meanwhile, U.S. West Texas Intermediate crude dropped 37 cents, or 0.5%, to $81.86 per barrel. Brent was on track for a fourth consecutive daily decline, and WTI was heading for a fifth straight drop. Market participants kept a close eye on developments related to energy shipments passing through the Strait of Hormuz.
Both benchmarks had already ended lower on Wednesday after bouncing back from earlier, deeper losses in the session. Brent settled 74 cents lower, or 0.84%, at $87.84 per barrel. WTI closed 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 experienced declines of over 3% in the previous trading session. This latest movement kept crude prices under pressure during early Asian trading hours.
Diplomatic discussions involving Iran, Oman, and Qatar remained in focus due to their relevance to the conditions surrounding the Strait of Hormuz. The strait, which connects the Persian Gulf with the Gulf of Oman and global shipping lanes, plays a vital role in transporting large quantities of crude oil and energy products from Gulf producers. Any shifts in shipping access could directly impact physical oil flows, making the waterway a crucial factor in daily crude market dynamics.
Focus stays on the Strait of Hormuz as a critical market element
The Strait of Hormuz is among the world’s most strategic channels for international energy transportation. Major Gulf exporters depend on this route to deliver oil to Asian markets and beyond. Alternative pipelines exist but are only capable of handling a fraction of the volume that moves through the waterway. Recent regional tensions have kept shipping conditions under close surveillance. The market has experienced notable daily swings in oil prices as traders react to verified changes in physical supply and transportation conditions. Such movements persisted into Thursday’s Asian trading session.
New U.S. inventory data provided additional insight into near-term supply levels. The U.S. Energy Information Administration announced that commercial crude stocks increased by 95,000 barrels last week, totaling 428.9 million barrels for the week ending August 21. This rise was smaller than market expectations prior to the report. After the figures were published, crude prices regained some of their earlier Wednesday losses. Despite this, both Brent and WTI still closed below their previous settlement prices.
OPEC+ September production adjustments remain on the radar
Ahead of September, the market continues to watch OPEC+ policies, with seven countries approving a production adjustment of 188,000 barrels per day for the upcoming month. The group comprises Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. These nations also reconfirmed their commitments to production compliance and compensation for previous overproduction. Their next scheduled meeting is set for September 6, maintaining its status as a key event on the global oil market calendar.
Thursday’s early decline resulted in Brent trading below $88 a barrel, and WTI dipping below $82. The week has seen a consistent retreat in both major benchmarks. At present, U.S. crude inventories stand at 428.9 million barrels following the latest weekly increase. Market focus remains on confirmed shipping developments, ongoing diplomatic talks in the region, and physical supply conditions. Traders are also monitoring inventory levels and upcoming production plans, factors that continue to influence oil prices as August draws to a close.