Brent Crude Prices Hold Near $108 Amid Middle East Supply Disruptions

Brent crude oil prices held near $108 per barrel on September 16 as Middle East supply disruptions continued to pose risks. The price of Brent for November delivery eased slightly after a sharp rally driven by these disruptions, but remained close to levels not seen since mid-May.

The Iran war and Houthi attacks in Yemen have tightened flows through two critical oil corridors: the Strait of Hormuz at the mouth of the Gulf and the Bab al-Mandab strait linking the Red Sea to the Gulf of Aden. Houthi attacks forced Saudi Arabia to shut the Yanbu pipeline, reducing an alternative route that normally allows some Gulf exports to bypass Hormuz.

Despite these supply threats, prices slipped on September 16 after US inventory data showed a surprise build in crude stockpiles. API data pointed to a surge of 7.14 million barrels in US crude inventories last week, defying expectations for another drawdown.