Brent Crude Falls Toward $106

Brent crude fell to around $106 a barrel on Wednesday, extending its retreat after two sessions of gains as the US administration sought to ease concerns over disruptions to Saudi oil supplies. US Energy Secretary Chris Wright said Saudi Arabia’s damaged East-West pipeline should resume operations within days, describing the outage as temporary. However, independent analysts warned that repairs could take several weeks. While the pipeline remains offline, Saudi Arabia has moved to increase crude exports through the Strait of Hormuz with US military assistance. Meanwhile, US government data showed crude inventories fell by 640,000 barrels to 423.4 million barrels in the week ended September 11, although the decline was smaller than analysts had expected. Stocks at the Cushing, Oklahoma, hub also decreased. The data contrasted sharply with the American Petroleum Institute’s previous estimate of a 7.1 million-barrel increase in crude inventories.

Brent crude fell to around $108 a barrel on Wednesday, retreating after two consecutive sessions of gains as signs of rising US inventories weighed on the market. The American Petroleum Institute reported a 7.1 million-barrel increase in US crude stockpiles last week, alongside higher gasoline and distillate inventories, with official government data due later in the day. Supply concerns nevertheless remain elevated. Saudi Arabia’s East-West pipeline remains offline, although US Energy Secretary Chris Wright said the outage should last only a matter of days. Iran-backed Houthi militants are advancing towards the Bab el-Mandeb Strait while intensifying attacks on Saudi targets and regional shipping routes. The disruption has reportedly prompted Saudi Aramco to delay some deliveries to European customers, increasing competition for alternative supplies. Libya also experienced a supply halt.

Brent crude fell below $108 per barrel on Wednesday, retreating from four-month highs after industry data showed a surprise increase in US crude inventories despite widening supply disruptions in the Middle East. API data showed US crude stockpiles surged by 7.14 million barrels last week following a 300,000-barrel decline in the previous week, defying expectations for another drawdown. Meanwhile, oil loadings at Saudi Arabia’s Yanbu port remained suspended following the shutdown of the crucial East-West pipeline. There is still no clear timeline for when operations at the key pipeline, which provides an alternative route around the Strait of Hormuz, will resume, as Iran-backed Houthi militants renewed attacks on Saudi Arabia this week. In Libya, the national oil company also suspended operations at two oilfields and a pumping station amid ongoing protests. Despite the disruptions, Libya’s overall oil output has remained largely stable at roughly 1.4 million barrels per day.