WTI falls toward $100.50 even as Middle East supply risks intensify

Last Updated on 16/09/2026

• Drone attacks forced Saudi Arabia to shut down its East-West pipeline, resulting in the cancellation of several crude shipments to Europe.
• Protests in Libya prompted the state-owned oil company to halt operations at two major oilfields and a pumping station.
• Geopolitical tensions intensified after Ukraine targeted a Russian refinery, while Russia carried out strikes on petrol stations in Kyiv.

WTI declines toward $100.50 despite mounting Middle East supply disruptions

West Texas Intermediate (WTI) crude retreats after posting gains for two consecutive sessions, trading near $100.50 per barrel during Wednesday’s Asian session. However, oil prices could regain momentum as supply disruptions across the Middle East continue to widen.

Saudi Arabia has reportedly cancelled several September crude shipments to European buyers after drone attacks prompted the emergency shutdown of its strategically important East-West pipeline. The pipeline provides an alternative route for transporting oil without relying on the Strait of Hormuz. With Iran-backed Houthi militants resuming attacks in the region, there is currently no confirmed timeline for when the pipeline will fully resume operations.

Supply concerns have also spread to North Africa. In Libya, ongoing local protests forced the national oil company to suspend activity at two major oilfields and a pumping station, further tightening the regional supply outlook.

Meanwhile, developments outside the Middle East are adding to uncertainty in global energy markets. Russia has recently attacked petrol stations in Kyiv, while Ukraine targeted a Russian oil refinery. The strikes come despite US President Donald Trump saying that Russia and Ukraine had agreed to stop attacks against each other’s energy infrastructure.

Oil risk premium remains elevated amid supply threats

TD Securities said the energy market continues to face significant upside risks, noting that crude oil and refined-product prices remain highly exposed to attacks targeting energy infrastructure in the Middle East and Russia. Continued threats to critical supply facilities are helping maintain a substantial risk premium across crude and refined products.