Oil Prices Plummet as US Crude Inventories Rise and Saudi Pipeline Closure Looms

Oil prices fell on Wednesday as traders weighed an unexpected rise in US crude inventories against concerns over supply disruptions following an attack on Saudi Arabia's East-West pipeline.

The price of Brent crude futures for November delivery dropped 1.02% to $107.64 a barrel, while West Texas Intermediate futures for October declined 1.29% to $104.46 per barrel.

U.S. crude oil inventories rose by 7.1 million barrels in the week ended September 11, surpassing analysts' expectations of a draw of about 1.6 million barrels, according to Reuters.

Meanwhile, traders remain concerned over supply disruptions following an attack by Iran on Saudi Arabia's crucial East-West pipeline that led to its closure over the weekend.

U.S. Energy Secretary Chris Wright said the closure was a brief interruption that will last days, while Andy Lipow, president of Lipow Oil Associates, estimated it would take months to repair.