Oil prices rise after attack on Saudi Arabian refinery reignites supply concerns

Oil prices surged on Wednesday following an attack on a refinery in Saudi Arabia, reigniting worries about Middle East supply risks stemming from the ongoing conflict with Iran and its allies. Brent crude futures climbed $1.48, or 1.3%, to $115.36 a barrel, while US West Texas Intermediate crude increased $1.22, or 1.22%, to $101.12.

The Yemen-based Iran-aligned Houthis claimed responsibility for launching a missile strike on Saudi Arabia's largest oil refinery, a 550,000 barrel per day facility, on Tuesday. Saudi authorities have yet to officially confirm the attack. Prices had previously fallen nearly $2 on Tuesday as talks in the region helped alleviate supply concerns, even though US crude inventories were reported to have risen by around 15,000 barrels in the week ending October 23, according to a Reuters poll of eight analysts.

OPEC+ oil-producing nations are anticipated to maintain their December output targets unchanged on Sunday, as per three sources familiar with the matter, aligning with market expectations. Production in most of the seven key OPEC+ members - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman - remains below their respective output targets.

Russian crude exports via Baltic and Black Sea ports may experience a decline next month as domestic refiners boost diesel production following a recent agreement with Washington, according to traders.