Oil Prices Rise on Houthi Attacks Targeting Saudi Refinery and U.S. Inventory Decline
Brent crude gained over 1.6% as Houthi attacks on Saudi Arabia’s Ras Tanura complex and a drop in U.S. crude stocks heightened supply concerns.
Oil prices advanced in early Asian trade on Wednesday after Houthi militants claimed to have struck Saudi Arabia’s Ras Tanura refinery, a key 550,000-barrel-per-day facility that also serves as a major export terminal. Brent futures were quoted at $115.70 a barrel, up 1.62%, while U.S. West Texas Intermediate rose 1.34% to $101.20.
Saudi officials said they intercepted three ballistic missiles aimed at the Eastern Province and four drones targeting the south, as well as two missiles directed at Riyadh that caused minor damage to a building, a construction site and a vehicle, according to statements from Saudi Civil Defense. The kingdom has not confirmed a direct hit on the Ras Tanura refinery, and independent verification of damage remains pending.
The market sentiment was further supported by a report from the Wall Street Journal indicating that the United States has warned Gulf Arab states to prepare for a possible short, intense military operation following the November 3 U.S. midterm elections. Analysts noted that the latest attacks and the speculation about a new U.S.–Israel campaign have limited the impact of recent diplomatic talks involving Saudi, Turkish, Pakistani and Iranian officials.
In the United States, the American Petroleum Institute estimated crude inventories fell by about 2.03 million barrels in the week ending Oct. 23, while gasoline and distillate stocks rose. Traders are awaiting the Energy Information Administration’s upcoming inventory report for further confirmation of the trend.