Oil prices dip as U.S. inventory build offsets M.East supply jitters

Oil prices declined on Wednesday as unexpectedly high U.S. inventories countered ongoing supply issues in the Middle East following Saudi Arabia's port shutdown due to Houthi attacks, according to data from the American Petroleum Institute. Brent oil futures dropped 0.5% to $108.22 a barrel, while West Texas Intermediate crude futures fell 0.8% to $105.0 a barrel.

Traders were cautious ahead of the Federal Reserve meeting, where a rate hike is widely anticipated. The unexpected U.S. inventory growth of 7.14 million barrels in the week to September 11 surpassed expectations for a 1.8 million barrel draw. Although global supply disruptions persisted, U.S. stockpiles remained stable. The build may also result from further releases from the U.S. Strategic Petroleum Reserve, which decreased by 130 million barrels in 2026, reaching 285.36 million barrels.

However, ongoing Middle East supply disruptions, including Saudi Arabia's halted loading at its Yanbu port due to Houthi attacks, continued to limit oil prices. The Houthi attacks have caused disruptions to about 4% to 5% of global oil supplies.