Oil Prices Slump as US Crude Inventories Rise Amid Middle East Disruptions
Oil prices fell on Wednesday due to an unexpectedly large build in US crude inventories. Brent crude futures dropped 73 cents, or 0.67%, to $108.02 a barrel at 0450 GMT, while US West Texas Intermediate futures were down $1.1, or 1.04%, at $104.73 a barrel.
The build in US crude inventories rose by 7.1 million barrels in the week ended September 11, according to market sources citing data from the American Petroleum Institute. This was higher than analysts' expectations for a draw of about 1.6 million barrels, according to a Reuters poll.
Despite the inventory pressure, prices remained resilient due to disruptions to physical supplies caused by attacks on Saudi energy facilities and the suspension of oil loadings at Saudi Arabia's Yanbu port. European diesel futures rose to a record high on Tuesday, further highlighting tightness in fuel markets as Middle East disruptions constrained crude and product flows.