Oil holds above $108 amid Middle East supply fears

September 16, 2026 (MLN): Oil prices declined on Wednesday after data showed a sharp increase in U.S. crude inventories last week, while markets continued to monitor the Middle East conflict and its potential impact on global oil supplies.

Currently, Brent crude futures is up, 0.74%, at $108.04 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $1.73, or 1.68%, to $104.71 per barrel by [10:25 am] PST

According to Reuters, citing data from the American Petroleum Institute (API), U.S. crude, gasoline and distillate stockpiles all increased during the week ended September 11. Crude inventories climbed by 7.1 million barrels, significantly exceeding analysts’ expectations for a decline of around 1.6 million barrels.

Market attention, however, remained focused on developments in the Middle East, particularly supply risks following Iran’s attack on Saudi Arabia’s key East-West pipeline, which was shut down over the weekend.

U.S. Energy Secretary Chris Wright said in a CNBC interview on Tuesday that the pipeline closure would be a brief disruption lasting only a few days.

However, Andy Lipow, president of Lipow Oil Associates, said in a Monday note that images of the damaged infrastructure suggested repairs could take months.

The financial implications of the ongoing conflict are also drawing investor attention. T

he nonpartisan Congressional Budget Office said in a report released Tuesday that the U.S. war with Iran had cost the Pentagon an estimated $38.1bn through August 1. The report estimated that an additional $2bn to $3bn could be required for each further month of fighting.

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