OIL prices held above US$105 a barrel on Wednesday as widening supply disruptions in Saudi Arabia and Libya heightened concerns over global availability, while investors awaited an expected Federal Reserve interest rate increase.
Brent crude was down 93 cents at US$107.82 a barrel, while US West Texas Intermediate fell 97 cents to US$104.86, after both benchmarks surged on Tuesday amid mounting supply concerns.
Saudi Arabia has halted oil loadings at the Red Sea port of Yanbu following an attack on its East-West pipeline, which provides an alternative route for transporting crude around the Strait of Hormuz. Repairs to the pipeline could take several weeks, although partial operations could resume sooner.
The disruption has also prompted Saudi Arabia to cancel some late-September oil shipments to European customers, adding to concerns over near-term supply availability.
Supply risks have been compounded by renewed attacks by Iran-backed Houthi militants and disruptions in Libya, where the National Oil Corporation shut three oilfields because of local protests, although it said national production remained steady at about 1.4 million barrels per day.
The latest developments have kept the oil market focused on the vulnerability of key supply routes around the Strait of Hormuz and the Red Sea, with physical crude cargoes in Europe already trading at substantial premiums amid the disruptions.
Beyond the Middle East, attacks on energy infrastructure continued in the Russia-Ukraine conflict despite US President Donald Trump saying the two sides had agreed to halt attacks on each other’s energy facilities.
In currency markets, the US dollar index rose above 99.6 on Tuesday, extending its advance for a fifth consecutive session as investors positioned for the Federal Reserve’s policy decision later Wednesday.
Economists surveyed by Reuters expect the Fed to raise its benchmark interest rate by 25 basis points, which would be its first increase since 2023. Policymakers are also due to release updated economic projections, with investors watching for signals on the future path of interest rates.
Higher oil prices have added to inflationary pressures and complicated the outlook for monetary policy, while concerns raised by technology executives about risks associated with artificial intelligence have also weighed on equities and supported demand for the US dollar.
The Bank of England is widely expected to leave rates unchanged on Thursday, while the Bank of Japan is expected to raise rates on Friday.
The US dollar/Malaysian ringgit exchange rate was unchanged at 4.0448 on Sept 16, according to the supplied market data. The ringgit has strengthened 0.40% over the past month and 3.43% over the past 12 months. - September 16, 2026
