Brent and WTI prices fell after US crude inventories rose unexpectedly, offsetting concerns over Saudi pipeline disruptions and Strait of Hormuz shipping risks.
Oil prices fell on Wednesday after an unexpected rise in US crude inventories outweighed concerns over supply disruptions following an attack on Saudi Arabia's East-West oil pipeline.
Brent crude futures fell 93 cents, or 0.86%, to $107.82 a barrel, while US West Texas Intermediate (WTI) crude declined 97 cents, or 0.92%, to $104.86 at 0028 GMT on Wednesday.
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Both benchmarks had gained more than $3 on Tuesday, reaching their highest levels since May 19, after Saudi Arabia suspended oil loadings at its Yanbu port and reduced some shipments to Europe.
The latest decline came after US crude inventories unexpectedly increased last week.
US crude stocks rise unexpectedly
US crude inventories increased by 7.1 million barrels in the week ended September 11, according to American Petroleum Institute data cited by market sources.
That was sharply above expectations. A Reuters poll of analysts had forecast a decline of around 1.6 million barrels.
US gasoline and distillate inventories also increased during the week.
The larger-than-expected stockpiles put downward pressure on oil prices, although market analysts said the inventory increase did not necessarily remove concerns about tight global crude supplies.
Saudi pipeline disruption raises supply concerns
Saudi Arabia suspended oil loadings at its Yanbu port after shutting its East-West pipeline following an attack attributed to Yemen's Iran-aligned Houthis.
The pipeline is an important alternative route for Saudi crude, allowing the world's largest crude exporter to transport around 4 million barrels per day to the Red Sea.
That volume represents roughly 4% of global oil supply.
The disruption has also affected Saudi oil shipments to Europe, adding to concerns about the availability of crude in international markets.
How long will the pipeline remain offline?
The US energy secretary said crude flows through the East-West pipeline should resume within days.
However, sources cited by Reuters gave different assessments of the repair timeline. One source estimated repairs could take five to six weeks, while another said partial pumping could resume sooner while repair work continues.
The uncertainty has kept attention focused on Saudi Arabia's ability to maintain export flows through alternative routes.
Strait of Hormuz adds another supply risk
Shipping activity through the Strait of Hormuz has also declined.
Commodity vessel traffic through the strategic waterway fell to fewer than 10 transits a day over the weekend, compared with a 10-day average of 14.
The Strait carried nearly one-fifth of global oil supplies before the US-Israeli war with Iran began on February 28.
Planned discussions between Gulf Arab states and Iran were also postponed, adding to concerns about the potential for further disruption to regional energy shipments.
Libya faces separate oil disruption
Libya's National Oil Corporation said operations at three oil fields were suspended after members of the Petroleum Facilities Guard protesting over their demands shut a valve on the Hamada-Zawiya crude export pipeline.
However, the disruption has so far had limited impact on Libya's overall production.
NOC Chairman Massoud Suleman told Reuters that production remained around 1.4 million barrels per day.
The oil market is currently balancing two opposing forces.
The unexpected increase in US crude inventories is putting downward pressure on prices because higher stockpiles can indicate weaker demand or greater available supply.
At the same time, disruptions involving Saudi Arabia's East-West pipeline and Yanbu port are creating concerns about the reliability of global supply routes. The situation around the Strait of Hormuz adds another layer of uncertainty because of the waterway's importance to international oil shipments.
The different repair estimates for the Saudi pipeline are particularly significant. A rapid restoration of flows could reduce supply concerns, while a prolonged outage could keep pressure on the market.
Oil prices therefore remain sensitive to developments in US inventories, Saudi export infrastructure, shipping through the Strait of Hormuz and the wider regional conflict.
Published: 16 Sept 2026, 09:41 am IST
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