Oil prices fell on Wednesday as data pointing to an unexpected build in U.S. inventories overshadowed continued supply disruptions in the Middle East after Saudi Arabia halted loadings at a major port due to Houthi attacks.

Crude was also subject to some profit-taking after appreciating sharply in recent weeks on worsening Houthi-Saudi hostilities and a continued standoff in the Strait of Hormuz.

Brent oil futures fell 0.5% to $108.22 a barrel by 21:05 ET (01:05 GMT), while West Texas Intermediate crude futures fell 0.8% to $105.0 a barrel.

Traders were wary of any big bets ahead of a closely watched Federal Reserve meeting later in the day, where the central bank is widely expected to hike interest rates.

API data shows unexpected build in U.S. inventories
Data from the American Petroleum Institute showed U.S. inventories unexpectedly grew 7.14 million barrels in the week to September 11, more than expectations for a 1.8 mb draw.

The print usually heralds a similar reading from official inventory data, which is due later on Wednesday.

But the API data indicated that despite global supply disruptions, stockpiles in the world’s largest fuel consumer remained steady.

Still, the build could also stem from continued releases from the U.S. Strategic Petroleum Reserve. Data from the Energy Information Administration showed the SPR shrank by nearly 130 mb so far in 2026, to 285.36 million barrels.

M.East supply disruptions persist
Bigger losses in oil were largely limited by continued supply disruptions in the Middle East.

Reports showed that Saudi Arabia had halted loading at its Yanbu port after the world’s biggest crude exporter shut its East-West pipeline amid attacks from Yemen’s Iran-aligned Houthis in recent weeks.

The Houthis were seen launching more strikes on Saudi Arabia this week, with Riyadh stating early-Wednesday it had intercepted a drone south of the Holy City of Mecca.

The Houthis had earlier this month secured key positions along the Red Sea, allowing them to strike tankers in the Bab el-Mandeb strait and further disrupt oil supplies in the region. Houthi aggression against the Saudis is expected to disrupt about 4% to 5% of global oil supplies.

This came against the backdrop of a continued U.S.-Iran standoff in the Strait of Hormuz, which kept oil flows through the key waterway at a fraction of prewar levels.

Brent was trading up nearly 4% this week after adding 8% apiece in the last two weeks, as markets priced for more supply disruptions.

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