WTI Prices Plunge on Surprise US Inventory Build
WTI crude oil prices fell to around $100 per barrel on Wednesday as an unexpected build in US inventories weighed on the market. Despite concerns over supply disruptions due to the suspension of oil loadings at Saudi Arabia's Yanbu port, traders were caught off guard by the API's report of a 7.14 million-barrel increase in crude stockpiles.
The API reported that US crude oil inventories rose for the week ending September 11, contrary to market expectations of a decline of 1.8 million barrels. This unexpected build has pushed down WTI prices, which were already under pressure from supply disruptions caused by the attack on Saudi Arabia's East-West pipeline.
Analysts at Rabobank warn that the latest supply disruption is unfolding against an increasingly fragile backdrop, with global crude inventories continuing to decline and Strategic Petroleum Reserves (SPRs) being strained. This combination of falling stocks and strained SPRs underpins a structurally tighter market and reinforces their higher WTI price profile for the coming years.