Oil prices fall after inventory build
- Oil prices declined after a larger-than-expected increase in U.S. crude inventories.
- Brent crude fell to $107.53 per barrel, while WTI dropped to $104.19.
- Traders continued monitoring Middle East supply disruptions affecting crude flows.
Oil prices declined on Wednesday after a two-day rally, with Brent crude futures falling $1.22 to $107.53 per barrel and U.S. West Texas Intermediate futures dropping $1.64 to $104.19 per barrel following an unexpected increase in U.S. crude inventories.
The decline followed Tuesday’s gains, when both benchmarks settled more than $3 higher after concerns over supply disruptions linked to Saudi Arabian export infrastructure and reduced shipments to Europe.
The American Petroleum Institute data showed U.S. crude inventories increased by 7.1 million barrels in the week ended September 11, compared with analyst expectations for a 1.6 million-barrel decline, according to a Reuters poll.
The inventory increase also included higher gasoline and diesel stockpiles, although market participants continued focusing on disruptions affecting physical crude supply, including issues involving Saudi Arabia’s East-West pipeline and Yanbu export facilities.
Following the announcement, Brent crude price was $107.53 per barrel and WTI crude was $104.19 per barrel.
Saudi Arabia has explored alternative crude loading arrangements through ship-to-ship transfers off Oman’s Sohar port after damage to key pipeline infrastructure, according to sources cited in market reports.
Oil markets have also tracked shipping activity through the Strait of Hormuz, a major energy transit route, where vessel traffic remained below recent averages following increased regional tensions.
The Middle East disruptions have contributed to concerns about crude and refined product flows, while traders continue balancing supply risks against inventory data from major markets.
