Oil prices fall around 4% as US seeks to ease Saudi supply concerns

Oil prices fell about 4% on Wednesday as the US administration sought to ease concerns over potential disruptions to Saudi Arabian supplies following damage to the kingdom’s East-West pipeline.

International benchmark Brent crude traded at $104.80 per barrel as of 1515GMT, down 3.8% from the previous close.

US benchmark West Texas Intermediate (WTI) fell 4% to $101.59 per barrel.

The benchmarks extended their retreat after recording gains in the previous two sessions.

US Energy Secretary Chris Wright said Saudi Arabia’s damaged East-West pipeline was expected to resume operations within days, describing the disruption as temporary. Some independent analysts, however, warned that repairs could take several weeks.

The pipeline carries crude from Saudi Arabia’s eastern oil-producing regions to the Red Sea port of Yanbu, allowing shipments to bypass the Strait of Hormuz.

While the route remains unavailable, Saudi Arabia has moved to increase crude exports through the strategic waterway with US military assistance.

Oil prices also came under pressure from US inventory figures.

Commercial crude oil inventories in the US decreased by 640,000 barrels to 423.4 million barrels in the week ending Sept. 11, according to government data.

The decline was smaller than market expectations, limiting the data’s supportive effect on prices. Inventories at the Cushing, Oklahoma, delivery hub also fell.

The official figures contrasted with an earlier estimate by the American Petroleum Institute, which indicated that crude stocks had increased by 7.1 million barrels.