Oil prices moved lower during Asian trading on Thursday following three consecutive sessions of gains, as markets assessed comments from US President Donald Trump and indications of increased crude flows through the Strait of Hormuz.
As of 04:42 ET (08:42 GMT), Brent Oil Futures for November delivery declined 0.2% to $95.43 a barrel, while West Texas Intermediate (WTI) fell 0.2% to $90.83 a barrel.
Both benchmarks had reached five-week highs during the previous three sessions amid concerns that renewed military exchanges between the United States and Iran could further disrupt oil supplies from the Middle East.
US and Iran Exchange Strikes
US forces struck Iran’s southern coast on Wednesday, while Tehran carried out retaliatory attacks against US positions across the region. The exchange was the most intense between the two countries since July.
Trump said on Wednesday that the renewed US campaign against Iran would not continue for an extended period.
The US president also said American forces had targeted Iranian radar and missile systems as well as capabilities associated with laying mines around the Strait of Hormuz.
Crude Flows Through Strait of Hormuz Increase
The Strait of Hormuz remained a focus for oil markets as participants monitored the level of energy shipments passing through the waterway.
US Energy Secretary Chris Wright said 17 million barrels of crude passed through the strait on Monday, representing the highest volume since the conflict reduced flows.
Shipping activity remained variable, however. Preliminary data from Kpler showed that four commodity vessels passed through the strait on Tuesday, compared with a 10-day average of approximately 13.
US Crude Inventories Fall by 4.5 Million Barrels
US commercial crude inventories declined by 4.5 million barrels last week, recording their first decrease in five weeks. Analysts had expected a small increase.
Gasoline inventories fell by 1.2 million barrels, while stocks of distillates, including diesel and heating oil, increased by approximately 800,000 barrels.
OPEC+ Expected to Maintain October Output Policy
Attention was also turning to OPEC+, which is expected to leave its October oil production policy unchanged when the group meets on Sunday.
The meeting follows the scheduled completion of the unwinding of a 1.65 million-barrel-per-day layer of production cuts. OPEC+ had increased its September output quotas by 188,000 barrels per day.