Oil prices retreated amid a rise in US inventories, even as supply disruptions in the Middle East remained in focus
According to sources, US crude oil, gasoline, and distillate inventories all increased last week. Oil prices retreated after a two-day rally, driven by an unexpectedly large rise in US crude inventories and ongoing supply disruptions in the Middle East.
Brent crude futures fell $1.22, or 0.67%, to $107.53 per barrel at 09:55 TRT (06:55 GMT), while WTI crude futures dropped $1.64, or 1.55%, to $104.19 per barrel.
On Tuesday, both benchmarks had gained more than $3 to close at their highest levels since May 19, as the suspension of loadings at Yanbu fueled supply concerns and Saudi oil shipments to Europe declined.
Data from the American Petroleum Institute (API) showed increases across US crude oil, gasoline, and distillate inventories last week. Crude oil stocks rose by 7.1 million barrels in the week ending September 11; analysts had expected a decline of approximately 1.6 million barrels.
Unexpected increases in gasoline and diesel inventories put pressure on prices, though the regional stock builds did not alter the underlying supply tightness in the global crude oil market. Prices remained resilient despite inventory pressures, as investors focused on disruptions to physical supplies.
The primary concern stems from disruptions to Saudi Arabia's East-West pipeline and Yanbu export infrastructure following attacks on Saudi energy facilities.
After a critical oil pipeline extending to the Red Sea was damaged by drone attacks, Saudi Arabia is offering to load more crude oil for Asian refineries via ship-to-ship transfers off the coast of Oman's Port of Sohar.
European diesel futures surged to a record high on Tuesday as fuel markets tightened further due to Middle East disruptions restricting the flow of crude oil and refined products.
Visible vessel transits through the Strait of Hormuz remained in the single digits at four on Tuesday, down from seven a day earlier, falling well short of the 10-day average of 18.
This drop in traffic through the waterway, which handles one-fifth of global oil and liquefied natural gas supplies, occurred following an intensification of attacks in the region.
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