Oil prices declined on Wednesday following an unexpected increase in U.S. crude inventories, as investors evaluated supply risks after Saudi Arabia halted oil loadings at its Yanbu port in the wake of an attack on its East-West pipeline to the Red Sea. Brent crude futures declined by 93 cents, representing a decrease of 0.86%, settling at $107.82 per barrel at 0028. Meanwhile, U.S. West Texas Intermediate futures experienced a drop of 97 cents, or 0.92%, reaching $104.86 per barrel. Both benchmarks settled more than $3 higher and at their highest levels since May 19 on Tuesday, as the Yanbu loading suspension stoked supply concerns and Saudi Arabia cut oil shipments to Europe. U.S. crude oil, petrol, and distillate inventories experienced an increase last week, according to market sources.

Crude inventories increased by 7.1 million barrels during the week ending September 11, according to sources. That stands in contrast to analysts’ expectations for a draw of approximately 1.6 million barrels, as indicated by a poll. API’s data indicated that unanticipated increases in petrol and diesel inventories have exerted downward pressure on prices; however, the regional stock rises do not alter the fundamental tightness in the global crude market, according to a note from Haitong Futures. Sources indicated on Tuesday that oil loadings at Saudi Arabia’s Yanbu port have been halted following the suspension of the East-West pipeline by the world’s largest crude exporter, a decision made in response to an attack by Yemen’s Iran-aligned Houthis on Friday.

Saudi Arabia has utilised the pipeline to redirect approximately 4 million barrels per day, representing about 4% of global supply, to the Red Sea port. The U.S. energy secretary indicated that crude is expected to recommence its flow through Saudi Arabia’s crucial East-West pipeline in the coming days. However, sources provided differing assessments regarding the duration for which the pipeline might remain offline. One indicated that repairs might require five to six weeks, while another suggested that the pipeline could potentially resume partial pumping earlier as repairs progress.

In Libya, independent of the Iran conflict, the National Oil Corporation announced the suspension of operations at three oil fields following the actions of protesting members of the Petroleum Facilities Guard, who closed a valve on the Hamada-Zawiya crude export pipeline. Libya’s oil production has not experienced substantial disruption due to the shutdowns, maintaining a level of approximately 1.4 million barrels per day, as stated by NOC Chairman Massoud Suleman in an interview.