Oil Prices Rise After Attack on Saudi Refinery

Global crude oil prices rose on Wednesday amid renewed concerns over oil supplies from the Middle East following reports of an attack on Saudi Arabia’s Ras Tanura refinery, one of the country’s largest oil-processing facilities.

Brent crude futures gained $1.48, or 1.3%, to reach $115.36 a barrel. US West Texas Intermediate (WTI) crude rose $1.22, or 1.22%, to $101.12 a barrel.

On Tuesday, Yemen’s Houthi rebels claimed to have launched a missile attack targeting the Saudi refinery, which has a processing capacity of 550,000 barrels of oil per day. Saudi authorities had not immediately confirmed the reported attack.

The ongoing conflict involving Iran and its allies has heightened concerns about possible disruptions to oil supplies across the Middle East, contributing to renewed upward pressure on international crude prices.

Oil prices had fallen by around $2 on Tuesday as hopes for progress in diplomatic discussions eased some concerns about supply disruptions. Reports of the latest attack, however, brought fresh uncertainty to the market.

Meanwhile, US crude oil inventories are expected to have edged up slightly. Analysts estimate that stockpiles increased by around 15,000 barrels in the week ended October 23.

Traders also expect Russia’s crude oil exports through its Baltic and Black Sea ports to decline next month if domestic refineries increase diesel production following an agreement with the United States.