WTI falls near $100 as Saudi adds Oman route, US stocks surge

West Texas Intermediate (WTI) oil price depreciates after posting nearly 3% gains in the previous day, trading around $100.00 per barrel during European hours on Wednesday. Crude oil prices slid after reports emerged that Saudi Arabia is offering additional crude cargoes via Oman, helping cool anxiety surrounding Middle Eastern supply disruptions.

According to sources cited by Reuters, Saudi’s state energy producers are arranging ship-to-ship transfers off Oman's Sohar port for Asian refiners. The workaround aims to bypass infrastructure damage caused by recent drone strikes on Saudi Arabia's critical pipeline to the Red Sea.

Adding further downward pressure on prices, US crude inventories surged by 7.1 million barrels for the week ending September 11, according to American Petroleum Institute (API) figures. This unexpected stock build sharply contradicted market expectations, as analysts polled by Reuters had projected a drawdown of roughly 1.6 million barrels.

Despite these bearish pressures, crude markets remain exposed to a potential rebound as geopolitical friction and supply bottlenecks expand across the region. Saudi Arabia has reportedly canceled several September deliveries to European buyers following the emergency shutdown of its East-West pipeline. With Iran-backed Houthi militants renewing localized attacks, there is no set timeline to reopen the pipeline, a vital bypass around the vulnerable Strait of Hormuz.

Meanwhile, North African output faces fresh strain. Libya’s national oil company was forced to halt operations across two major oilfields and a key pumping station due to persistent local protests, further restricting global crude flows.

Pipeline damage shifts Saudi exports back through Hormuz

Rabobank’s Bas van Geffen argues that the recent infrastructure damage has materially altered the regional energy calculus, noting that “the damage to the pipeline increases Iran’s leverage.” He explains that the disruption “forces Saudi Arabia to pivot back to oil exports through the Strait of Hormuz,” thereby heightening the strategic importance of this chokepoint and reinforcing the broader supply-risk narrative around key Middle East shipping lanes.