Brent fell 93 cents to $107.82 and WTI dropped 97 cents to $104.86 on Wednesday, a 0.86% and 0.92% slide respectively—after a sharp rise on Tuesday to their highest levels since May 19.
US crude, gasoline and distillate inventories all rose last week, with crude inventories climbing 7.1 million barrels in the week ended September 11, against analysts’ expectation of a 1.6 million‑barrel decline, per a Reuters poll.
The surge comes after Saudi Arabia halted oil loadings at Yanbu and cut shipments to Europe, following an attack on its East‑West pipeline that reroutes roughly 4 million barrels per day—about 4% of global supply.
The Energy Secretary said flows should resume within days, but sources tell Reuters repairs could take five to six weeks, with partial pumping possible sooner.
Meanwhile, Libya’s National Oil Corporation suspended operations at three fields after a guard shut a valve on the Hamada‑Zawiya pipeline, adding further supply uncertainty.
Strait of Hormuz traffic fell to under ten transits a day over the weekend, down from a 10‑day average of 14, impacting the one‑fifth of global oil that passes through the waterway.
Asian stocks edged higher, with the MSCI Asia‑Pacific index up 0.2% as traders awaited the Federal Reserve’s policy decision later that day.
Looking ahead, traders will watch the Fed’s stance, the pace of inventory build‑ups, and any signs of pipeline repairs to gauge whether oil prices will rebound or stay subdued.