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

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

The Houthis, a Yemeni rebel group, claimed responsibility for hitting Saudi Arabia's largest oil refinery with a missile on Tuesday, escalating their attacks against the world's second-largest oil producer. Saudi officials have yet to confirm the incident at the 550,000 barrel per day facility. Prices had previously fallen nearly $2 on Tuesday as Middle Eastern talks aimed at easing supply concerns. However, data suggesting a rise in US crude inventories further dampened the gains.

Despite crude oil stockpiles rising by approximately 15,000 barrels in the week ending October 23, according to a Reuters survey of eight analysts, OPEC+ countries are set to maintain their December oil output targets when they meet on Sunday, according to three individuals familiar with the matter. Production in most of the seven core OPEC+ members—Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman—is currently below their output targets.

Additionally, Russian crude exports could face a decline next month as domestic refiners boost diesel production following a recent agreement with the United States, traders have indicated.