FX.co ★ Brent Pulls Back as US Inventories Rise

Brent crude slipped below $108 per barrel on Wednesday, pulling back from four-month highs after industry data revealed an unexpected build in US crude inventories, even as supply disruptions in the Middle East intensified. According to API figures, US crude stockpiles jumped by 7.14 million barrels last week, reversing a 300,000-barrel draw the week before and confounding expectations for another decline.

At the same time, oil loadings at Saudi Arabia’s Yanbu port remained halted following the shutdown of the vital East–West pipeline. There is still no clear timeline for when this key pipeline—which offers a strategic alternative route that bypasses the Strait of Hormuz—will resume operations, as Iran-backed Houthi militants have renewed attacks on Saudi Arabia this week.

In Libya, the national oil company has also suspended operations at two oilfields and a pumping station amid ongoing protests. Nevertheless, the country’s overall oil production has held largely steady at around 1.4 million barrels per day despite these localized interruptions.