Oil Pulls Back after 2-Day Gain as US Inventories Rise
Crude oil fell to around $104 a barrel on Wednesday, retreating after two consecutive sessions of gains as signs of rising US inventories weighed on the market. The American Petroleum Institute reported a 7.1 million-barrel increase in US crude stockpiles last week, alongside higher gasoline and distillate inventories, with official government data due later in the day. Supply concerns nevertheless remain elevated. Saudi Arabia’s East-West pipeline remains offline, although US Energy Secretary Chris Wright said the outage should last only a matter of days. Iran-backed Houthi militants are advancing towards the Bab el-Mandeb Strait while intensifying attacks on Saudi targets and regional shipping routes. The disruption has reportedly prompted Saudi Aramco to delay some deliveries to European customers, increasing competition for alternative supplies. Libya also experienced a supply halt.
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Brent crude fell to around $108 a barrel on Wednesday, retreating after two consecutive sessions of gains as signs of rising US inventories weighed on the market. 1 million-barrel increase in US crude stockpiles last week, alongside higher gasoline and distillate inventories, with official government data due later in the day. Supply concerns nevertheless remain elevated. Saudi Arabia’s East-West pipeline remains offline, although US Energy Secretary Chris Wright said the outage should last only a matter of days.
Iran-backed Houthi militants are advancing towards the Bab el-Mandeb Strait while intensifying attacks on Saudi targets and regional shipping routes. The disruption has reportedly prompted Saudi Aramco to delay some deliveries to European customers, increasing competition for alternative supplies. Libya also experienced a supply halt.