SINGAPORE / RankWire.AI / – Oil prices continued their downward trend on Thursday, extending losses that persisted over several sessions. Brent crude futures fell by 41 cents, or 0.5%, to reach $87.43 per barrel at 0330 GMT. U.S. West Texas Intermediate crude decreased by 37 cents, or 0.5%, settling at $81.86 per barrel. Brent was on track for a fourth consecutive daily decline, while WTI was heading for its fifth straight drop. Market participants remained attentive to ongoing developments affecting energy shipments through the Strait of Hormuz.
Both benchmarks had already declined on Wednesday after recovering from steeper losses earlier in the session. Brent closed 74 cents lower, or 0.84%, at $87.84 a barrel, and WTI finished 13 cents lower, or 0.16%, at $82.23. Earlier that day, Brent had fallen around 2%, and WTI had dropped approximately 1.8%. The contracts also experienced declines of over 3% during the previous session. These movements 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 efforts also involved Qatar, highlighting its connection to the ongoing talks. The strait links the Persian Gulf with the Gulf of Oman and serves as a vital route for global shipping. It transports significant volumes of crude oil and energy products from Gulf producers. Alterations in shipping access can directly impact physical oil flows, underscoring the strait’s importance in daily crude trading activities.
Strait of Hormuz continues to dominate market attention
As one of the world’s most critical passages for international energy shipments, the Strait of Hormuz plays a key role in global markets. Major Gulf exporters depend on this route to reach customers across Asia and beyond. Alternative pipelines are only capable of handling a fraction of the oil typically moved through the waterway. 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. These dynamics persisted through Thursday’s Asian trading session.
New U.S. inventory data offered additional insight into near-term supply prospects. The U.S. Energy Information Administration reported a rise of 95,000 barrels in commercial crude stocks last week, bringing inventories to 428.9 million barrels for the week ending August 21. This increase was less than what the market anticipated before the report’s release. Following the figures, crude prices recovered part of their earlier Wednesday losses, although both Brent and WTI still closed below their previous settlement prices.
OPEC+ plans for September supply adjustments stay on the table
Ahead of September, OPEC+’s production policies remained a key factor in market sentiment. Seven member countries approved a plan to adjust output by 188,000 barrels per day for the upcoming month. The group comprises Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They reaffirmed commitments to production compliance and measures to offset previous overproduction. The next scheduled meeting for these nations will take place on September 6, maintaining its status as a significant event on the global oil market calendar.
Thursday’s early losses pushed Brent below $88 a barrel and WTI below $82. The declines extended a week-long retreat in both major benchmarks. After the latest weekly report, U.S. crude inventories stood at 428.9 million barrels. Market focus continued to be on shipping developments, regional diplomatic talks, and physical supply conditions. Investors also monitored inventory levels and upcoming production adjustments, all influencing oil prices as the global energy landscape approaches the end of August.