Oil prices rose on Wednesday after Yemen’s Houthi movement claimed responsibility for a missile strike on a major Saudi Arabian refinery, raising fresh concerns about possible disruptions to oil supplies amid the conflict involving Iran and its regional allies.
Brent crude futures gained $1.48, or 1.3%, to $115.36 a barrel by 0140 GMT, while US West Texas Intermediate crude rose $1.22, or 1.22%, to $101.12.
The Houthis said on Tuesday that they had targeted Saudi Arabia’s largest oil refinery, which has a capacity of 550,000 barrels per day. Saudi authorities had not immediately confirmed the reported attack.
The price increase followed a fall of nearly $2 a barrel on Tuesday, when developments in Middle East talks eased some concerns about oil supplies.
However, expectations of higher US crude inventories offered some relief to the market. A poll of eight analysts indicated that US crude stockpiles increased by about 15,000 barrels in the week ended October 23.
Meanwhile, members of the OPEC+ alliance are expected to maintain their December production targets when they meet on Sunday, in line with market expectations. Production in most of the seven core members, Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman remains below their assigned targets.
Separately, Russian crude exports from Baltic and Black Sea ports could decline next month as domestic refineries increase diesel production following a deal with Washington this month, traders said.
Ojo Triumph
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