Oil Prices Climb After Missile Attack on Saudi Refinery Raises Supply Concerns

Oil prices increased on Wednesday after a missile strike was reported on Saudi Arabia's largest oil refinery, heightening concerns about supply disruptions in the Middle East. Brent crude futures gained $1.48, or 1.3%, to $115.36 a barrel, while U.S. West Texas Intermediate rose $1.22, or 1.22%, to $101.12 a barrel as of 0140 GMT.

The Yemen-based Houthi movement, aligned with Iran, said it had hit the 550,000-barrel-per-day facility, though Saudi officials had not yet confirmed the attack. Prices had previously fallen by nearly $2 on Tuesday as regional diplomatic talks eased some supply worries.

A Reuters poll of eight analysts indicated U.S. crude inventories increased by about 15,000 barrels in the week ending 23 October, contrary to expectations of a drawdown. Sources familiar with OPEC+ plans told Reuters that the group is likely to keep its December output targets unchanged, matching market forecasts. Production at the seven core OPEC+ members—Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman—remains below their set targets.

Traders noted that Russian crude exports from Baltic and Black Sea ports could decline next month as domestic refiners boost diesel output under a recent agreement with Washington.