Oil Prices Fall as US Stockpiles Surge, Saudi Disruptions Persist

Oil prices fell after a two-day rally as industry data showed U.S. crude inventories rose by 7.1 million barrels last week, sharply exceeding expectations for a 1.6 million-barrel draw. Brent declined 73 cents to $108.02 a barrel, while West Texas Intermediate fell $1.10 to $104.73. Unexpected increases in gasoline and distillate inventories added to the pressure, signaling weaker-than-anticipated demand from refineries and fuel users. Losses were limited by continuing concerns over Middle Eastern supply disruptions, including suspended loadings at Saudi Arabia’s Yanbu port and the shutdown of the kingdom’s East-West pipeline after attacks on Saudi energy infrastructure. Traders also monitored reduced shipping traffic through the Strait of Hormuz and tight European diesel markets, underscoring the risk that physical supply constraints could persist despite the U.S. inventory build.