Oil falls as US crude inventories rise despite Saudi supply concerns

Oil prices declined on Wednesday following an unexpected increase in U.S. crude inventories, as investors evaluated supply risks following Saudi Arabia's suspension of oil loadings at Yanbu port due to an attack on its East-West pipeline. Brent crude futures dropped 93 cents, or 0.86%, to $107.82 a barrel, while U.S. West Texas Intermediate futures decreased 97 cents, or 0.92%, to $104.86 a barrel.

Both benchmarks ended over $3 higher than the previous day, their highest levels since May 19, as the pipeline suspension increased supply concerns. U.S. crude oil, gasoline, and distillate inventories all rose last week, according to data from the American Petroleum Institute. Market sources reported that crude inventories increased by 7.1 million barrels in the week ending September 11, exceeding analysts' expectations of a 1.6 million barrel draw.