Oil prices pulled back on Wednesday after industry figures signaled an unanticipated increase in U.S. crude stockpiles, muting the markets reaction to persistent supply disruptions in the Middle East. The move followed a period of sharp gains driven by escalating Houthi attacks and reduced flows through key shipping lanes.
Market moves at a glance
By 21:05 ET (01:05 GMT), Brent futures were down 0.5% at $108.22 a barrel, while West Texas Intermediate futures slipped 0.8% to $105.0 a barrel. Traders were reported to be avoiding large directional bets ahead of a closely watched Federal Reserve meeting later in the day, where a rate increase is widely expected.
Inventory surprise from API
Data from the American Petroleum Institute showed U.S. crude inventories rose by 7.14 million barrels in the week to September 11, a marked reversal from consensus expectations that forecast a 1.8 million-barrel draw. Industry watchers often look to the API print as a preliminary indicator for the official government release, which was scheduled for later the same day.
The API reading suggested that, despite ongoing global supply interruptions, stockpiles in the worlds largest fuel consumer had not tightened as markets had priced. Analysts noted that part of the apparent build could be linked to continued releases from the U.S. Strategic Petroleum Reserve. Official Energy Information Administration data showed the SPR had fallen by nearly 130 million barrels so far in 2026, bringing it to 285.36 million barrels.
Middle East disruptions remain
While the inventory surprise weighed on prices, losses were contained by fresh signs of disruption to physical flows in the Middle East. Reports indicated that Saudi Arabia had halted loading at its Yanbu port after the country closed its East-West pipeline following a series of attacks attributed to Yemens Iran-aligned Houthi movement in recent weeks.
The Houthis were reported to have launched additional strikes on Saudi territory this week, and Saudi authorities said early on Wednesday that they intercepted a drone south of the holy city of Mecca. Earlier in the month the group secured key positions along the Red Sea, enabling strikes on tankers in the Bab el-Mandeb strait and adding to concerns over supply interruptions.
Market commentary cited estimates that Houthi actions could disrupt roughly 4% to 5% of global oil supplies. At the same time, a continuing U.S.-Iran standoff in the Strait of Hormuz was keeping flows through that critical waterway at only a fraction of prewar levels.
Price context and recent trend
Even with Wednesdays retreat, Brent had been trading roughly 4% higher on the week, after posting two consecutive weekly gains of about 8% apiece in the prior weeks. Some traders attributed Wednesdays decline in part to profit-taking after the rapid advance in prices on concerns over Middle East hostilities and shipping disruptions.
With the U.S. Federal Reserve meeting looming and official inventory data pending, market participants appeared to be balancing short-term physical risks against fresh signals of near-term supply resilience from the U.S. data.