SINGAPORE / RankWire.AI / – Oil prices declined once more on Thursday, continuing a downward trend that has persisted over several sessions. Brent crude futures decreased by 41 cents, or 0.5%, to reach $87.43 a barrel at 0330 GMT. Meanwhile, U.S. West Texas Intermediate crude dropped 37 cents, or 0.5%, settling at $81.86 a barrel. Brent was on track for a fourth consecutive daily decline, while WTI was heading for its fifth straight drop. Investors maintained close watch on developments concerning energy shipments passing through the Strait of Hormuz.
Both benchmarks had already closed lower on Wednesday after bouncing back from deeper losses earlier in the trading session. Brent settled 74 cents lower, or 0.84%, at $87.84 per barrel. WTI finished down 13 cents, or 0.16%, at $82.23. Earlier in the day, Brent had fallen roughly 2%, and WTI about 1.8%. Both contracts experienced declines of more than 3% in the previous session. This latest move kept crude prices under pressure during early trading hours in Asia.
Diplomatic discussions involving Iran and Oman remained a focal point, mainly because they addressed issues related to the Strait of Hormuz. Qatar was also engaged in diplomatic activities linked to these talks. The strait connects the Persian Gulf with the Gulf of Oman and serves as a critical route for global shipping. It transports significant volumes of crude oil and other energy commodities from Gulf producers. Any shifts in shipping access can directly impact physical oil flows. As a result, the waterway continues to play an essential role in daily crude oil trading.
Hormuz Strait Continues to Influence Global Oil Markets
The Strait of Hormuz ranks among the world’s most vital passages for international energy shipments. Major oil exporters from the Gulf depend on this route to deliver supplies to buyers across Asia and beyond. Alternative pipelines can only handle part of the oil usually transported through the waterway. Recent regional tensions have kept shipping conditions in this area under close observation. Oil prices have experienced sharp fluctuations daily as traders evaluate confirmed changes in physical supply and transportation conditions. These movements persisted through Thursday’s Asian trading session.
Latest U.S. inventory data offered another insight into near-term oil supply. The U.S. Energy Information Administration reported a rise of 95,000 barrels in commercial crude stocks last week. Total inventories reached 428.9 million barrels for the week ending August 21. The increase was smaller than market forecasts before the report’s release. Following the figures, crude prices recovered some of their earlier Wednesday losses. Despite this bounce, Brent and WTI still closed below their previous settlement levels.
OPEC+ Production Adjustment for September Remains in Focus
The broader market outlook continues to include OPEC+ supply policies ahead of September. Seven member countries approved a production cut of 188,000 barrels per day for next month. These nations are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They also reaffirmed commitments related to production compliance and compensation for past overproduction. Their next scheduled meeting is on September 6, a confirmed event on the global oil calendar.
Thursday’s early decline pushed Brent below $88 a barrel and WTI under $82. The week’s downward trend persisted across both major benchmarks. After the latest weekly report, U.S. crude inventories stood at 428.9 million barrels. Market focus remained on confirmed shipping developments, diplomatic talks in the region, and physical supply conditions. Traders also kept an eye on inventory levels and upcoming production adjustments. These factors continue to influence oil prices as August draws to a close and the global energy market adjusts.