Oil prices fell on September 16 after an unexpected increase in U.S. crude oil inventories. At the same time, supply disruptions from Saudi Arabia are keeping the market on edge.
Brent crude futures fell by 93 cents, or 0.86%, to $107.82 per barrel. U.S. WTI crude lost 97 cents, or 0.92%, falling to $104.86 per barrel, Reuters reported.
U.S. inventories rise against forecasts
New data on U.S. oil inventories put pressure on prices. According to the American Petroleum Institute, crude oil inventories rose by 7.1 million barrels in the week ending September 11.
Meanwhile, analysts surveyed by Reuters had expected inventories to decline by about 1.6 million barrels. U.S. gasoline and distillate inventories also increased.
In an analytical report, Haitong Futures said that the inventory build-up “put pressure on prices.” At the same time, the company assessed that rising inventories in certain regions do not change the overall supply shortage in the global oil market.
Disruptions in Saudi Arabia
The market is also being affected by supply disruptions in Saudi Arabia. Following an attack by Iran-backed Yemeni Houthis, the country halted operations on the East-West pipeline, while oil loading at the port of Yanbu was suspended.
Saudi Arabia had been redirecting around 4 million barrels of oil per day through this pipeline to a Red Sea port. This accounts for approximately 4% of global supplies.
