Oil Pulls Back as US Inventories Rise
Crude oil fell below $105 per barrel on Wednesday, retreating from four-month highs after industry data showed a surprise increase in US crude inventories despite widening supply disruptions in the Middle East. API data showed US crude stockpiles surged by 7.14 million barrels last week following a 300,000-barrel decline in the previous week, defying expectations ...
Crude oil prices slipped below $105 per barrel on Wednesday, declining from their recent four-month high, according to industry data. The unexpected rise in US crude inventories was a key factor in the market shift, despite ongoing supply disruptions in the Middle East. The American Petroleum Institute (API) reported a significant increase in US crude stockpiles, with US crude reserves swelling by 7.14 million barrels last week.
This amounted to a rebound from a 300,000-barrel decline in the previous week, which had previously been anticipated to result in further decreases.
The surge in US crude inventories stood in stark contrast to expectations, leading to the oil price drop. Meanwhile, oil loading at Saudi Arabia's Yanbu port remained suspended due to the closure of the crucial East-West pipeline. This pipeline serves as an alternative route around the Strait of Hormuz, which has been impacted by attacks from Iran-backed Houthi militants. The resumption of operations at the key pipeline remains uncertain, as there is no clear timeline for when activities will restart.
In Libya, the national oil company also suspended operations at two oilfields and a pumping station due to ongoing protests. Despite these disruptions, Libya's oil output has remained relatively stable, averaging approximately 1.4 million barrels per day.
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