Crude Oil Falls to $104.68 Per Barrel on September 16, Down 1.09 Percent as Pipeline and Production Disruptions Continue Without Clear Resolution Timeline

Crude oil fell to $104.68 per barrel on September 16, down 1.09 percent from the previous day, while remaining 23.88 percent higher over the past month and 64.33 percent above year-ago levels, according to Trading Economics. The decline came as a technical correction from elevated levels near $105-110 reached earlier in the week, though prices remained supported by ongoing supply disruptions across multiple fronts. Saudi Arabia reportedly cancelled some shipments after drone attacks forced the closure of the East-West pipeline, notifying European customers that several September deliveries had been scrapped, according to Trading Economics. There is still no clear timeline for when operations at the key pipeline, which provides an alternative route around the Strait of Hormuz and moves up to five million barrels per day, will resume, as Iran-backed Houthi militants renewed attacks on Saudi Arabia this week. In Libya, the national oil company suspended operations at two oilfields and a pumping station amid ongoing protests by Petroleum Facilities Guard members demanding transfer to NOC oversight. The combination of the East-West pipeline closure, Libya field shutdowns, and the continued effective closure of the Strait of Hormuz to most commercial tanker traffic has tightened global supply at a time when OPEC members have already slashed production due to export bottlenecks. Saudi Arabia's oil output recently dropped to its lowest level since 1990 as the prolonged halt of tanker flows from the Persian Gulf forced production cuts, while the kingdom exhausts stored crude awaiting the pipeline restart.