Oil prices dip as U.S. crude inventories unexpectedly rise
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Oil prices fell due to rising crude inventories in the United States (Photo: REUTERS/Brendan McDermid)
Oil prices dipped slightly on Sept. 16, following an unexpected rise in U.S. crude oil inventories, according to Reuters.
Brent crude futures fell 93 cents, or 0.86%, to $107.82 a barrel, while U.S. West Texas Intermediate futures dropped 97 cents, or 0.92%, to $104.86 a barrel.
U.S. inventories of crude oil, gasoline and distillates all rose.
According to the American Petroleum Institute (API), crude oil inventories rose by 7.1 million barrels for the week ending Sept. 11.
That figure diverged sharply from analysts' expectations; a Reuters poll had forecast a drawdown of approximately 1.6 million barrels.
In a market analysis, Haitong Futures said the unexpected rise in gasoline and diesel inventories, per the API data, weighed on prices, but noted that regional inventory increases do not change the broader picture of a global oil market shortage.
Meanwhile, sources said crude loading at Saudi Arabia's Yanbu port was suspended after the world's largest crude exporter halted operations on its East-West pipeline following an attack by Iran-backed Yemeni Houthi forces.
Saudi Arabia had been using that pipeline to redirect about 4 million barrels of oil per day to its Red Sea port, accounting for roughly 4% of global oil supply.
As previously reported, U.S. President Donald Trump said on July 22 that every time Iran attacked a vessel in the Strait of Hormuz, the United States would destroy a bridge or power plant in response.
Overnight into July 23, U.S. forces carried out their 12th consecutive night of strikes on Iran.
On July 23, oil prices rose to their highest level in more than six weeks as tensions escalated in the Red Sea and the United States struck Iran again.
On July 30, oil prices fell despite fresh escalation in the Middle East.
On Aug. 10, oil prices rose amid uncertainty over whether the Strait of Hormuz would reopen.
Oil prices dipped slightly on Aug. 21, despite the possibility of a second consecutive weekly gain, as the deadlocked U.S.-Iran conflict continued to disrupt supply from a key Middle Eastern oil-producing region.
On Aug. 27, oil prices continued to decline, responding to expectations that talks between Iran and Oman would help reopen the Strait of Hormuz.
On Sept. 14, oil prices jumped more than 3% following new Houthi strikes on Saudi Arabia and Iranian attacks on vessels in the Persian Gulf.
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