Oil prices fell on Wednesday after an unexpected increase in US crude inventories weighed on the market, while investors continued to assess supply risks following a disruption to Saudi Arabia’s oil infrastructure.
Brent crude futures declined 93 cents, or 0.86%, to $107.82 a barrel at 0028 GMT. US West Texas Intermediate (WTI) futures fell 97 cents, or 0.92%, to $104.86 a barrel.
Both benchmarks had settled more than $3 higher on Tuesday, reaching their highest levels since May 19. The gains followed the suspension of oil loadings at Saudi Arabia’s Yanbu port and a reduction in Saudi shipments to Europe, raising concerns about global supply.
US crude oil, gasoline and distillate inventories all increased last week, according to data from the American Petroleum Institute (API), cited by market sources.
US crude inventories rose by 7.1 million barrels in the week ended September 11, compared with analysts’ expectations for a decline of about 1.6 million barrels. The unexpected increase added downward pressure on oil prices.
Haitong Futures said in a note that the rise in gasoline and diesel inventories had weighed on prices, although regional stock increases did not necessarily alter the underlying tightness in the global crude market.
Supply concerns remain linked to Saudi Arabia after oil loadings at Yanbu were suspended following an attack on the country’s East-West pipeline by Yemen’s Iran-aligned Houthis. Saudi Arabia subsequently shut the pipeline, according to sources.
Pakistan Stock Exchange Turns Bearish as KSE-100 Falls Over 600 Points
The pipeline has been used to reroute around 4 million barrels of oil per day to the Red Sea port, equivalent to roughly 4% of global supply.
The US energy secretary said crude flows through the strategically important pipeline should resume within days. However, estimates over the repair timeline have varied, with one source suggesting repairs could take five to six weeks, while another said partial pumping could resume sooner as work continues.
Meanwhile, Libya reported a separate disruption. The National Oil Corporation said operations at three oil fields were suspended after protesting members of the Petroleum Facilities Guard closed a valve on the Hamada-Zawiya crude export pipeline.
