Oil prices fall as US crude inventories rise despite Saudi supply concerns
Oil prices declined as unexpected growth in US crude inventories offset supply concerns caused by an attack on a Saudi Arabian pipeline. Despite the disruption to the East-West pipeline and Red Sea export hubs, market analysts are focused on the surplus in US reserves.
Why it matters
Fluctuations in oil supply and inventory levels directly impact global energy costs and inflation rates, affecting the broader economy.
Oil prices fell on Wednesday after an unexpected increase in US crude inventories outweighed concerns over supply disruptions following an attack on Saudi Arabia’s East-West pipeline.Brent crude futures declined 93 cents, or 0.86%, to $107.82 a barrel at 0028 GMT, while US West Texas Intermediate (WTI) crude futures dropped 97 cents, or 0.92%, to $104.86 a barrel.Both benchmarks had risen more than $3 on Tuesday to their highest levels since May 19 after Saudi Arabia suspended oil loadings at its Red Sea export hub of Yanbu and cut some shipments to Europe.US crude, gasoline and distillate inventories all increased last week, according to data from the American Petroleum Institute (API), cited by market sources.Crude inventories rose by 7.1 million barrels in the week ended September 11, against analysts’ expectations of a decline of around 1.6 million barrels, according to a Reuters poll.Saudi Arabia suspended oil loadings at Yanbu after shutting…
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