Oil falls as US crude inventories rise despite Saudi supply concerns

Crude values dropped on Wednesday, Business Recorder reported, after US crude inventories unexpectedly grew, even as traders weighed supply risks tied to Saudi Arabia. In early trade, Brent was 93 cents cheaper at $107.82 a barrel, while US West Texas Intermediate had shed 97 cents to $104.86.

Saudi Arabia halted loadings at Yanbu, a Red Sea port, after the East-West pipeline was closed following Friday's strike by Yemen's Houthis. The kingdom had been using that line to reroute about 4 million barrels per day, roughly 4 per cent of global supply, to the port.

Data from the American Petroleum Institute showed US crude stocks climbed by 7.1 million barrels over the seven days ended September 11, while analysts had anticipated a decline of roughly 1.6 million barrels, according to a Reuters poll. The US energy secretary has said flows should resume within days, but sources offered differing estimates, from repairs taking five to six weeks to a sooner partial restart.