Oil prices eased on Wednesday after a surprise increase in US crude inventories offset concerns over supply disruptions in Saudi Arabia.
Brent crude futures fell 93 cents or 0.86% to US$107.82 a barrel at 0028 GMT, while US West Texas Intermediate (WTI) crude declined 97 cents or 0.92% to US$104.86.
Both benchmarks had gained more than US$3 in the previous session, reaching their highest levels since May 19 after Saudi Arabia suspended oil loadings at its Yanbu port and cut shipments to Europe.
The decline came after US crude inventories rose by 7.1 million barrels in the week ended Sept 11, according to data from the American Petroleum Institute cited by market sources. Analysts polled by Reuters had expected inventories to fall by about 1.6 million barrels.
Gasoline and distillate inventories also increased, adding further pressure on oil prices.
Haitong Futures said in a note that while the rise in regional inventories had weighed on prices, it did not alter the underlying tightness in the global crude market.
Supply concerns remain after Saudi Arabia shut its East-West pipeline following an attack by Yemen’s Iran-aligned Houthis on Friday. The pipeline is capable of rerouting around four million barrels per day, equivalent to about 4% of global oil supply, to the Red Sea port.
The US energy secretary said crude flows through the pipeline should resume within days, although estimates on the repair timeline have varied. One source told Reuters repairs could take five to six weeks, while another said partial pumping could resume sooner as work continues.
Separately, Libya’s National Oil Corporation said operations at three oil fields were suspended after members of the Petroleum Facilities Guard shut a valve on the Hamada-Zawiya crude export pipeline.
However, the disruption has not significantly affected Libya’s overall output, which remains at around 1.4 million barrels per day, NOC Chairman Massoud Suleman told Reuters.
