SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, extending a slide that has persisted over several trading sessions. Brent crude futures decreased by 41 cents, or 0.5%, to $87.43 a barrel at 0330 GMT. Meanwhile, U.S. West Texas Intermediate crude dropped 37 cents, also 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 session of losses. Traders remained attentive to ongoing developments impacting energy shipments through the Strait of Hormuz.
Both benchmarks had already closed lower on Wednesday after recovering from earlier session lows. Brent finished 74 cents lower, a 0.84% decrease, at $87.84. WTI settled 13 cents down, or 0.16%, at $82.23. Earlier on Wednesday, Brent had fallen roughly 2%, and WTI about 1.8%. In the previous session, both contracts had lost more than 3%. This latest movement kept crude prices under pressure during early Asian trading hours.
Focus remained on regional discussions involving Iran and Oman, as they addressed issues surrounding the Strait of Hormuz. Diplomatic activities also involved Qatar. The strait connects the Persian Gulf with the Gulf of Oman and global shipping routes. It transports significant quantities of crude oil and energy products from Gulf producers. Any shifts in shipping access can directly influence physical oil flows, making the waterway a critical factor in daily crude market dynamics.
Strait of Hormuz continues to be central to market attention
The Strait of Hormuz is among the most vital routes for international energy transportation. Major Gulf exporters depend on this route to deliver oil to consumers across Asia and other regions. Alternative pipelines are only capable of handling a limited portion of the oil typically moved through this waterway. In recent regional tensions, shipping conditions in the area have been closely monitored. As traders evaluate confirmed changes in physical supply and transportation, oil prices have experienced significant daily fluctuations. These movements persisted into Thursday’s Asian trading session.
The latest U.S. inventory figures offered additional insight into near-term supply. The U.S. Energy Information Administration reported a weekly increase of 95,000 barrels in commercial crude stocks, reaching 428.9 million barrels for the week ending August 21. This rise was less than the market had anticipated prior to the report’s release. Following the data, crude prices regained some of their earlier Wednesday losses, though both Brent and WTI still closed below their previous settlement levels.
OPEC+ September production adjustments remain on the horizon
Ahead of September, OPEC+ policies regarding supply continued to influence market sentiment. Seven member countries approved a production adjustment of 188,000 barrels per day for the upcoming month. These nations include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They also reaffirmed their commitments to production compliance and addressing prior overproduction issues. The group scheduled its next monthly meeting for September 6, which remains an established event on the global oil market calendar.
Thursday’s early trading saw Brent fall below $88 a barrel and WTI dip under $82. This decline extended a week of persistent retreat for both major benchmarks. The latest inventory figures showed crude stocks at 428.9 million barrels following the recent weekly increase. Market focus remained on shipping developments, regional diplomatic efforts, and physical supply conditions. Traders continued to watch inventory levels and upcoming production adjustments, as these factors influenced oil prices during the closing weeks of August.