Oil prices decline following unexpected rise in US inventories

Oil prices declined on Wednesday as US crude inventories recorded an unexpected increase of 7.1 million barrels. Following the development, a drop was observed in the barrel prices of Brent crude and West Texas Intermediate.

Unexpected Rise in Inventories

Based on American Petroleum Institute data, increases were recorded last week in US crude oil, gasoline, and distillate inventories.

In the week ending September 11, crude oil inventories rose by 7.1 million barrels, whereas analysts had projected a decline of approximately 1.6 million barrels.

Latest Status on Oil Prices

Following the inventory data, Brent crude fell by 0.86 percent in the markets to retreat to $107.82 per barrel.

Meanwhile, US crude WTI lost 0.92 percent in value, declining to the $104.86 level.

Pipeline Attack in Saudi Arabia

In Saudi Arabia, the world's largest crude oil exporter, the East-West pipeline was shut down following an attack by Iran-backed Houthis in Yemen.

Due to the attack and the pipeline shutdown, oil loadings at the Port of Yanbu were temporarily suspended, which heightened supply concerns.

Production Disruptions in Libya

The National Oil Corporation of Libya reported that operations were affected due to a protest carried out by members of the Petroleum Facilities Guard.

As a result of the closure of a valve on the Hamada-Zawiya pipeline, production activities at three different oil fields were halted.