SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, continuing a downward trend over several sessions. Brent crude futures dropped 41 cents, or 0.5%, to $87.43 a barrel at 0330 GMT, while U.S. West Texas Intermediate crude fell 37 cents, or 0.5%, to $81.86 per barrel. Brent was on track for its fourth consecutive daily loss, and WTI was heading for a fifth straight decline. Market participants remained attentive to developments impacting energy shipments through the Strait of Hormuz.
Both benchmarks had already closed lower on Wednesday after rebounding from earlier session losses. Brent finished 74 cents down, or 0.84%, at $87.84, while WTI dropped 13 cents, or 0.16%, to $82.23. Earlier that day, Brent had fallen about 2%, with WTI dropping approximately 1.8%. Both contracts also saw declines exceeding 3% in the previous session. These movements contributed to continued pressure on crude prices during early Asian trading hours.
Focus remained on regional diplomatic talks involving Iran and Oman, which addressed the situation around the Strait of Hormuz. Qatar was also engaged in related diplomatic efforts. The strait, connecting the Persian Gulf with the Gulf of Oman, serves as a vital route for global shipping. It transports significant volumes of crude oil and energy products from Gulf producers, making shifts in shipping access capable of directly influencing physical oil flows. As a result, the waterway continued to be a crucial factor in daily crude market trading.
Strait of Hormuz continues to be a central market concern
Known as one of the most critical pathways for international energy shipments, the Strait of Hormuz remains vital for Gulf exporters reaching Asian and other markets. Alternative pipelines can only handle a fraction of the oil transported through the strait. Recent regional tensions have kept shipping conditions under close watch, with oil prices experiencing sharp daily fluctuations as traders react to confirmed changes in physical supply and transportation routes. These dynamics persisted through Thursday’s Asian session.
Latest U.S. inventory figures offered another snapshot of short-term supply. The U.S. Energy Information Administration reported that commercial crude stocks increased by 95,000 barrels last week, reaching 428.9 million barrels for the week ending August 21. This rise was smaller than analysts had anticipated. Following the data release, crude prices regained some ground after earlier Wednesday losses, though Brent and WTI still closed below their previous settlement levels.
OPEC+ September output plan remains in focus
Ahead of September, the broader market continues to monitor OPEC+ production policies. Seven member countries agreed to a reduction of 188,000 barrels per day for the upcoming month. These include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They reaffirmed commitments related to production compliance and compensation for prior overproduction. Their next monthly meeting is scheduled for September 6, maintaining its position as a key event on the global oil calendar.
Thursday’s early decline pushed Brent below $88 a barrel and WTI under $82, extending the week’s downward momentum. Despite the recent gains, inventories remain at 428.9 million barrels after the latest weekly increase. Market focus continues to be on shipping developments, diplomatic talks, physical supply issues, inventory levels, and upcoming production adjustments—all influential factors shaping oil prices as August draws to a close.