Market News
Oil falls as U.S. crude inventories reportedly rise, traders weigh Saudi pipeline closure
Key Points
- Oil fell as traders weighed an unexpected increase in U.S. crude inventories against worries over supply disruptions after an Iran-backed attack on Saudi Arabia’s East-West pipeline.
- U.S. crude oil, gasoline and distillate inventories all rose last week, according to Reuters.
- The U.S. war with Iran has cost the Pentagon an estimated $38.1 billion through Aug. 1.
Oil retreated Wednesday after a report said U.S. energy inventories rose last week, with investors assessing the latest developments in Middle East conflict and associated supply risks.
Futures for international benchmark Brent crude for November delivery dropped 1.02% to $107.64 a barrel. U.S. West Texas Intermediate futures for October declined 1.29% to $104.46 per barrel.
U.S. crude oil, gasoline and distillate inventories all rose last week, Reuters reported, citing sources for data from the American Petroleum Institute. Crude inventories rose by 7.1 million barrels in the week ended Sept. 11, compared with analysts’ expectations for a draw of about 1.6 million barrels, Reuters reported.
Meanwhile, traders remain glued to developments in the Middle East, amid concerns over supply disruptions following an attack by Iran on Saudi Arabia’s crucial East-West pipeline that led to its closure over the weekend.
U.S. Energy Secretary Chris Wright told CNBC in an interview on Tuesday that the closure was a brief interruption that will last days. Andy Lipow, president of Lipow Oil Associates, said in a note on Monday that “judging from the on-line pictures, it will take months to repair.”
