Today’s oil price: Brent, WTI fall

Oil fell on Wednesday as investors assessed the latest developments in the Middle East conflict and related supply risks, following reports that U.S. energy inventories rose last week.

International benchmark futures brent crude oil Oil for November delivery fell 1.02% to $107.64 per barrel. us West Texas Intermediate Futures In October, the price fell 1.29% to $104.46 per barrel.

U.S. crude oil, gasoline and distillate inventories all increased last week, Reuters reported, citing data from the American Petroleum Institute. Crude oil inventories rose by 7.1 million barrels in the week ending Sept. 11, compared with analysts’ expectations of about 1.6 million barrels, according to Reuters.

Meanwhile, traders are still closely monitoring developments in the Middle East amid concerns about supply disruptions caused by the Iranian attack that shut down Saudi Arabia’s vital East-West pipeline last weekend.

U.S. Energy Secretary Chris Wright said in an interview with CNBC on Tuesday that the shutdown was a short-term interruption that would last several days. “Judging by the photos online, repairs will likely take months,” Andy Lipow, president of Lipow Oil Associates, said in a memo Monday.

The economic damage caused by the Middle East conflict is also attracting attention. The U.S.-Iran war will cost the Pentagon an estimated $38.1 billion through Aug. 1, and each additional month of fighting could cost an additional $2 billion to $3 billion, according to a report released Tuesday by the nonpartisan Congressional Budget Office.

“Oil will continue to be closely tied to the security situation along the Gulf export route and the pace of infrastructure repair in Saudi Arabia,” said Joseph Dariye, managing director at brokerage Tickmill.

“Further maritime traffic disruptions and prolonged pipeline outages could tighten the physical market and prolong price increases,” Dahlier added.