Oil Prices Fall on U.S. Inventory Build, Middle East Risks Limit Losses

Oil prices fell on Wednesday after an unexpectedly large U.S. crude inventory build, though losses were limited by ongoing supply disruptions in the Middle East, including a shutdown of Saudi Arabia's key East-West pipeline. The pullback followed a two-day rally that had pushed Brent and West Texas Intermediate benchmarks to their highest settlements since May 19. The American Petroleum Institute estimated that U.S. crude inventories rose by 7.1 million barrels for the week ended September 11, according to market sources. The figure sharply contrasted with analyst expectations for a draw of about 1.6 million barrels. The API data also indicated unexpected builds in gasoline and distillate inventories. Traders are now awaiting the official U.S. Energy Information Administration report, scheduled for release at 10:30 a.m. ET, for confirmation. At 0750 a.m. Saudi time, Brent crude futures fell 73 cents, or 0.67 percent, to $108.02 a barrel. U.S. West Texas Intermediate futures were down 1.1 percent, or $1.10, at $104.73 a barrel. Both benchmarks had settled more than 3 percent higher on Tuesday. The inventory data provided a test of whether domestic U.S.