Saudi Pipeline Attack Sends Oil Prices Tumbling Amid Inventory Build

Oil prices fell on Wednesday after an unexpected build in U.S. crude inventories, while investors assessed supply risks following Saudi Arabia's suspension of oil loadings at its Yanbu port.

The suspension was due to an attack on the country's East-West pipeline to the Red Sea, which had been used to reroute around 4 million barrels per day, or about 4% of global supply.

Saudi Arabia has cut oil shipments to Europe as a result. U.S. crude oil, gasoline and distillate inventories all rose last week, with crude inventories increasing by 7.1 million barrels in the week ended September 11, according to API data.

The unexpected build in inventory weighed on prices, but regional stock increases do not change the underlying tightness in the global crude market, Haitong Futures said in a note.