Oil prices fell on Wednesday, September 16, 2026, retreating after a two-day rally following an unexpectedly large build in United States crude inventories.
Brent crude futures fell $1.22, or 0.67%, to $107.53 a barrel at 0655 GMT, while U.S. West Texas Intermediate futures were down $1.64, or 1.55%, at $104.19 a barrel.
Both benchmarks settled more than $3 higher and at their highest levels since May 19 on Tuesday, September 15, as the Yanbu loading suspension stoked supply concerns and Saudi Arabia cut oil shipments to Europe.
U.S. crude oil, gasoline and distillate inventories all rose last week, market sources said on Tuesday, citing data from the American Petroleum Institute.
Crude inventories rose by 7.1 million barrels in the week ended September 11, the sources said, citing API data.
That compared with analysts’ expectations for a draw of about 1.6 million barrels, according to a Reuters poll.
Naira strengthens to N1,380/$ in parallel market
API’s data showed unexpected builds in gasoline and diesel inventories have weighed on prices, but regional stock increases do not change the underlying tightness in the global crude market, Haitong Futures said in a note.
The head of market insights at Phillip Nova, Priyanka Sachdeva, in a report on Wednesday, said that despite the inventory pressure, prices remained resilient as traders focused on disruptions to physical supplies.
“The bigger concern remains the disruption to Saudi Arabia’s East-West pipeline and Yanbu export infrastructure, following attacks on Saudi energy facilities,” she said.
European diesel futures rose to a record high on Tuesday, further highlighting tightness in fuel markets as Middle East disruptions constrained crude and product flows.
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