U.S. Crude Inventories Rise as Oil Prices Fall Amid Ongoing Middle East Tensions
Oil prices fell on Wednesday as U.S. crude inventories rose last week, according to Reuters, which cited sources from the American Petroleum Institute.
The Brent crude futures for November delivery dropped 1.02% to $107.64 a barrel, while U.S. West Texas Intermediate futures for October declined 1.29% to $104.46 per barrel.
The increase in U.S. energy inventories was unexpected, as analysts had predicted a draw of about 1.6 million barrels. Instead, crude inventories rose by 7.1 million barrels in the week ended September 11.
Traders remain concerned about supply disruptions due to the ongoing Middle East conflict. Saudi Arabia's crucial East-West pipeline was closed over the weekend after an attack by Iran, which U.S. Energy Secretary Chris Wright described as a 'brief interruption' that will last days.
However, Andy Lipow, president of Lipow Oil Associates, disagreed, stating that it would take months to repair the pipeline based on online pictures.