Global oil prices rose on Wednesday after Yemen’s Houthi group claimed responsibility for an attack on a major Saudi Arabian oil refinery, reigniting concerns about potential supply disruptions in the Middle East.
Brent crude futures gained $1.48, or 1.3%, to reach $115.36 a barrel, while US West Texas Intermediate (WTI) crude rose $1.22, or 1.22%, to $101.12 a barrel.
The latest gains came as markets reassessed the risks to global oil supplies amid escalating regional tensions and uncertainty surrounding the conflict involving Iran and its allies.
Houthi Claim Raises Concerns Over Saudi Oil Supplies
Yemen’s Houthis said on Tuesday that they had struck Saudi Arabia’s largest oil refinery with a missile, intensifying attacks targeting the world’s second-largest crude oil producer.
The facility has a processing capacity of 550,000 barrels per day. Saudi authorities had not immediately confirmed the reported strike, leaving the extent of any damage and its potential impact on operations unclear.
Saudi Arabia is the world’s largest crude oil exporter, making any threat to its oil infrastructure a significant concern for international energy markets.
The latest incident has heightened fears that further attacks could disrupt production, refining or transportation routes in a region central to global energy supplies.
Oil Prices Recover After Tuesday’s Decline
Oil prices rebounded on Wednesday after falling by nearly $2 a barrel on Tuesday, when diplomatic developments in the Middle East helped ease concerns about possible supply disruptions.
However, the reported attack on the Saudi refinery renewed market uncertainty, highlighting how quickly geopolitical developments can influence crude oil prices.
Investors are also monitoring US inventory data for indications of changes in demand and supply. A Reuters poll of eight analysts indicated that US crude oil inventories were expected to increase by approximately 15,000 barrels in the week ended October 23.
The anticipated increase in stockpiles could provide some counterweight to supply concerns, although geopolitical risks remained a major influence on market sentiment.
Oil Prices Rise as Middle East Tensions Raise Supply Fears
OPEC+ Expected to Maintain December Output Targets
The OPEC+ alliance of oil-producing countries is expected to keep its December production targets unchanged when members meet on Sunday, according to three people familiar with the matter cited by Reuters.
The expected decision is in line with market expectations as producers assess supply conditions and uncertainties in the global oil market.
Production in most of the seven core OPEC+ members, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman, remains below their respective output targets.
This gap between production targets and actual output could limit the amount of additional oil available to the market if supply disruptions intensify.
Potential Decline in Russian Oil Exports
Separately, Russia’s crude oil exports from its Baltic and Black Sea ports could decline next month as domestic refineries increase diesel production, traders said.
The potential change follows a deal with Washington earlier this month, although the full impact on export volumes remains uncertain.
Any reduction in Russian shipments could add another layer of uncertainty to global oil supplies, particularly if disruptions in the Middle East persist.
With prices responding to geopolitical developments, diplomatic efforts, inventory trends and production decisions, energy markets remain sensitive to any further threats to major oil-producing facilities and export routes.
