NEW YORK (Realist English). On September 16, oil prices declined as data on an unexpected build in US inventories outweighed concerns about ongoing supply disruptions in the Middle East. Oil also came under pressure from profit-taking after a sharp rally in recent weeks.
Brent crude futures for November delivery fell 0.5% to $108.22 per barrel as of 00:05 Moscow time. The US benchmark WTI for October delivery declined 0.8% to $105.0 per barrel. Earlier, on September 15, both benchmarks had reached their highest levels since May 19.
Unexpected Build in US Inventories
The key factor behind the decline was data from the American Petroleum Institute (API), which showed that US crude oil inventories for the week ending September 11 rose by 7.14 million barrels — whereas analysts had expected a decline of 1.8 million barrels. Gasoline inventories increased by 1.5 million barrels, and distillates by 1.6 million barrels.
The inventory build may be partly due to continued releases from the US Strategic Petroleum Reserve. According to the Energy Information Administration, since the beginning of 2026 the reserve has shrunk by almost 130 million barrels — to 285.36 million barrels.
Official inventory data are expected later on September 16. Traders also refrained from large bets ahead of the Federal Reserve meeting, from which a rate hike is widely expected.
Disruptions in Saudi Arabia Limited the Decline
A deeper price drop was limited by ongoing supply disruptions. Saudi Arabia suspended loading at the port of Yanbu after closing the East–West pipeline due to attacks by Yemen’s Houthis.
According to Reuters, Saudi Aramco notified some European buyers of cancellations of part of their supplies, and Poland’s Orlen is seeking alternative sources. The cost of individual cargoes rose to $120 per barrel.
This week the Houthis continued to strike Saudi Arabia: early on September 16, Riyadh reported intercepting a drone south of Mecca. Houthi aggression is expected to disrupt about 4–5% of global oil supplies.
In Libya, three fields were shut down after the closure of the Hamada-Zawiya pipeline, but overall production remains at around 1.4 million barrels per day.
Two-Week Rally
Despite the decline on September 16, Brent has risen almost 4% this week after gains of 8% in each of the two previous weeks. Over the month, the increase has been about 20%.
Prices continue to be supported by the ongoing US–Iran standoff in the Strait of Hormuz, which has kept oil flows through this key waterway at only a small fraction of pre-war levels.
