SINGAPORE / RankWire.AI / – Oil prices declined once again on Thursday, continuing a downward trend that has persisted over several sessions. Brent crude futures fell by 41 cents, or 0.5%, reaching $87.43 per barrel at 0330 GMT. 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, while WTI was heading for its fifth straight drop. Market participants kept an eye on developments related to energy shipments through the Strait of Hormuz.
Both benchmarks closed lower on Wednesday after some recovery from earlier losses in the session. Brent settled 74 cents down, or 0.84%, at $87.84 a barrel. WTI ended 13 cents lower, or 0.16%, at $82.23. Earlier in the day, Brent had fallen roughly 2%, and WTI about 1.8%. Both contracts also saw declines of over 3% in the previous session. These movements kept crude prices under pressure during early Asian trading hours.
Diplomatic talks involving Iran, Oman, and Qatar continued to draw attention, especially around the Strait of Hormuz. This waterway connects the Persian Gulf with the Gulf of Oman and global shipping routes. It transports significant amounts of crude oil and energy products from Gulf producers. Any changes to shipping access can have immediate effects on physical oil flows. As a result, the Strait remains a key factor influencing daily crude market trading.
Strait of Hormuz remains a central focus for markets
The Strait of Hormuz is one of the world’s most critical pathways for international energy shipments. Major Gulf exporters depend on this route to reach Asian and other global markets. Alternative pipelines only partially replace the volume usually shipped through the waterway. Tensions in the region have kept shipping conditions under close watch. Oil prices have experienced sharp daily swings as traders react to changes in physical supply and transport conditions. These fluctuations persisted through Thursday’s Asian session.
Latest U.S. inventory data provided additional insight into near-term supply. The U.S. Energy Information Administration reported a 95,000-barrel rise 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 expectations before the report. After the data release, crude prices partly recovered from earlier Wednesday losses. Despite this, Brent and WTI still settled below their previous levels.
OPEC+ plans for September supply adjustments remain in focus
The broader market outlook also included OPEC+ supply policy ahead of September. Seven member countries approved a production cut of 188,000 barrels per day for next month. The group includes Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They reaffirmed their commitments to production compliance and compensation for previous overproduction. The next scheduled meeting is on September 6, and it remains on the global oil calendar.
Thursday’s early trading saw Brent fall below $88 a barrel and WTI below $82. The week has seen consistent declines for both major benchmarks. U.S. crude inventories stood at 428.9 million barrels after the latest weekly increase. Market focus continues to be on shipping developments, diplomatic talks, and physical supply conditions. Traders are also watching inventory levels and upcoming production decisions. These factors continue to influence oil prices as August draws to a close.