WTI Price Stabilizes at $100 as Saudi Arabia Compensates for Supply Disruptions
WTI crude oil prices have stabilized around $100 per barrel as supply concerns remain elevated. The price correction follows a recent surge above $106, largely due to a partial easing of supply disruptions from Saudi Arabia.
Riyadh has begun offering additional crude cargoes to Asian buyers through transshipment near the Omani port of Sohar, compensating for disruptions affecting the Red Sea route. Additionally, expectations have emerged for a faster restoration of the damaged East-West Pipeline, which previously allowed around 2.6-4.0 million bpd to be redirected to the Red Sea.
US commercial crude oil inventories fell by 0.64 million barrels to 423.4 million in the week ended September 11, according to EIA data. However, gasoline and distillate stocks rose by around 0.79 million and 1.59 million barrels, respectively, easing tensions in the refined products market.
The Middle East remains the main source of risk premium in oil prices, with damage to Saudi Arabia's East-West Pipeline and ongoing fighting involving the Houthis in Yemen contributing to supply disruptions. The IEA estimates that over 10 million bpd of production in Persian Gulf countries remained offline in August, while global observed oil inventories declined by another 95 million barrels during the month.
The technical outlook for WTI remains sensitive to geopolitics, with the EIA expecting supply disruptions from the Middle East to persist through the end of the fourth quarter. The agency forecasts a further decline in global inventories of around 1.7 million bpd on average in October-December and projects an average Brent price of around $90 in the second half of 2026.