From CNBC · Justina Lee · · 1m 20s
Oil slips as supply risks collide with stock build
Oil prices fell after U.S. inventories rose, even as traders watched Saudi pipeline repairs and Gulf shipping risks.
In brief
Oil prices fell after U.S. inventories rose, even as traders watched Saudi pipeline repairs and Gulf shipping risks. Oil is being pulled between bearish U.S. stock builds and the risk that Gulf attacks or slow Saudi repairs choke supply. Originally reported by CNBC.
Oil pulls back
Brent and WTI fell Wednesday as traders balanced rising U.S. stockpiles against fresh fears that Middle East fighting could disrupt supply.
Prices move lower
Brent for November delivery dropped 1.02% to $107.64 a barrel. U.S. WTI for October fell 1.29% to $104.46.
Inventories surprise traders
U.S. crude, gasoline and distillate inventories all rose last week. Crude stocks climbed 7.1 million barrels, not the expected 1.6 million barrel draw.
Saudi pipeline closes
An Iran-backed attack shut Saudi Arabia's East-West pipeline over the weekend, keeping traders focused on how long repairs may take.
“it will take months to repair”
Hormuz stays tense
Ships remained anchored around the Strait of Hormuz as markets watched Gulf export routes. Any maritime disruption could squeeze physical oil supply.
War costs mount
The U.S. war with Iran has cost the Pentagon an estimated $38.1 billion through Aug. 1, with another $2 billion to $3 billion possible for each added month.
The main idea
Oil is being pulled between bearish U.S. stock builds and the risk that Gulf attacks or slow Saudi repairs choke supply.
