Prices increased after Yemen’s Iran-aligned Houthi group reported an attack on a major oil refinery in Saudi Arabia. Oil prices rose by more than 1% on Wednesday. The report raised concerns about possible disruptions to global oil supplies amid ongoing conflicts in the Middle East.
US crude oil prices also recorded gains. Markets are waiting for US President Donald Trump’s next move on Iran. US crude oil inventories fell last week, contrary to market expectations. The US Energy Information Administration (EIA) was scheduled to release its latest oil stock data. Traders were watching the report for further information about US crude supplies. However, oil production in seven major OPEC+ countries is still below their set targets. These countries are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman. Actual production below target levels means the countries are not producing as much oil as their agreed output limits would allow.
Brent crude prices climbed to $115.24 per barrel. Brent crude futures rose by $1.36, or 1.2%, as of 0858 GMT on Wednesday, according to Reuters market data. West Texas Intermediate (WTI) crude futures rose by $1.62, or 1.6%, to $101.52 per barrel at the same time. Crude stocks in the US dropped by 2.03 million barrels in the week ended October 23, according to data from the American Petroleum Institute (API), cited by market sources.
Oil prices remain high as investors seek more clarity on how the US president will respond to tensions involving Iran, ING strategists said, according to Reuters. Official US inventory figures were due later on Wednesday.
A recent deal with Washington could affect Russia’s oil exports.
Traders said Russian refineries are expected to raise diesel output following a deal reached with the US this month. The increase in domestic refining could leave less crude oil available for export through Russia’s Baltic and Black Sea ports, they said.
