LONDON: Oil prices rose on Wednesday after Yemen’s Houthi group claimed a missile attack on Saudi Arabia’s largest oil refinery, renewing concerns over potential supply disruptions in the Middle East amid the conflict involving Iran and its regional allies.
Thank you for reading this post, don't forget to subscribe!Brent crude futures climbed $1.48, or 1.3%, to $115.36 a barrel, while US West Texas Intermediate (WTI) crude rose $1.22, or 1.22%, to $101.12 a barrel.
The Houthis said on Tuesday they had targeted Saudi Arabia’s largest refinery, which has a processing capacity of 550,000 barrels per day. Saudi authorities had not immediately confirmed the reported strike.
Oil prices rebounded after falling nearly $2 a barrel on Tuesday as diplomatic talks in the Middle East eased concerns over potential supply disruptions.
Meanwhile, US crude inventories were expected to show a modest increase. A poll of eight analysts by Reuters estimated that stockpiles rose by around 15,000 barrels in the week ended October 23.
The OPEC+ group of oil-producing countries is expected to maintain its December production targets at a meeting on Sunday, according to three sources cited by Reuters. The move would be in line with market expectations, although production in most of the seven core members remains below their respective targets.
Separately, Russian crude oil exports from Baltic and Black Sea ports could decline next month as domestic refiners increase diesel production following a deal with Washington this month, traders said.
By Reuters
