Thursday's decline in oil prices was expected to end three consecutive gains as worries about weak demand after an unexpected increase in U.S. crude stockpiles overcame fears about delays to global commerce brought on by Middle East tensions.

Brent crude dipped 0.3% to $79.48 per barrel, meanwhile US WTI slumped by 0.3% at $74.

For the third session in a row, the two benchmarks closed higher on Wednesday as investors expressed concern over potential trade delays due to major maritime carriers opting out of the Red Sea route, as longer trips result in greater transportation and insurance expenses.

According to the EIA, U.S. oil production increased from the previous peak of 13.2 million barrels per day to a record 13.3 million barrels per day the earlier week.

Around 12% of all shipping traffic in the world travels via the Suez Canal and up the Red Sea. Analysts noted that as the majority of Middle Eastern crude is exported via the Strait of Hormuz, the effect on supply has been little thus far.