Brent crude settled at $103.50 a barrel on Wednesday, capping a 14.4% gain for September, while WTI added 5.3% for the month even as it slipped on the day. The rally came from supply-disruption fears tied to the Middle East conflict, but Saudi Arabia's export recovery and an unexpected U.S. inventory build pulled prices off their highs.
Brent and WTI post strong September gains
Brent crude futures expiring in November rose 0.9% to settle at $103.50 a barrel, notching a 14.4% gain for September. WTI crude futures dipped 0.1% to $90.31 a barrel but still rose 5.3% for the month. Traders weighed improving Middle East crude flows against a lack of diplomatic progress between the U.S. and Iran.
The monthly advance was driven by supply disruption fears, the impasse between Washington and Tehran, and a widening conflict between Iran-backed Houthis and the Saudi-backed government in Yemen.
Saudi Arabia restores pipeline flows
Houthi attacks damaged Saudi Arabia's East-West Pipeline earlier this month, shutting it down for several days. However, the kingdom restored flows to at least 3.5 million barrels per day, around half its capacity, according to Bloomberg News, after ramping up exports from its east coast and using ship-to-ship transfers off Oman. The pipeline feeds the Red Sea port of Yanbu, where nearly 10 million barrels of crude were loaded at Yanbu and nearby Al Muajjiz, shipping data showed.
According to JPMorgan analysts: "The Middle East's oil export arteries are flowing again." They added that regional exports are now just 11% below pre-war levels, with the 10-day average for total oil exports holding at 20.5 million barrels a day, or 89% of 2025 levels.
The pipeline bypasses the Strait of Hormuz, which has been effectively closed since the U.S. and Israel began their joint assault on Iran in late February. President Trump said Wednesday the U.S. had gained near-total control of the strait, though talks with Tehran remain stalled and Qatar continues to mediate.
U.S. crude stockpiles unexpectedly climb
At home, U.S. commercial crude inventories excluding the Strategic Petroleum Reserve rose 900,000 barrels in the week of September 25 to 427.3 million barrels, the Energy Information Administration said, confounding expectations for a 700,000-barrel decline. SPR stocks fell 800,000 barrels to 283.8 million barrels, the lowest level since October 1982.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
