Oil Gains Over 1% After Attack on Saudi Refinery Raises Supply Risk Concerns
Brent crude rose 1.2% to $115.24 a barrel following a missile strike on Saudi Arabia's largest refinery, while U.S. crude also climbed amid heightened Middle East tensions.
Oil prices rose more than 1% on Wednesday after a missile attack on Saudi Arabia's biggest refinery revived worries about supply disruptions in the Middle East. Brent crude futures were up $1.36, or 1.2%, at $115.24 a barrel by 0858 GMT, and U.S. West Texas Intermediate gained $1.62, or 1.6%, to $101.52.
The Iran-aligned Houthi movement said it had hit the 550,000-barrel-per-day facility, though Saudi officials had not yet confirmed the strike. ING commodity strategists said the market is now pricing in a higher chance of further escalation.
"Oil prices remain elevated as the market waits for greater clarity on President Donald Trump's next move toward Iran," the strategists said.
"If we get past the elections without renewed strikes on Iran, that might be enough for the market's risk premium to start eroding," they added, referring to the U.S. midterm elections on November 3.
U.S. crude inventories fell by about 2.03 million barrels in the week to Oct. 23, according to data cited by the American Petroleum Institute, contrasting with analysts' expectations of a modest build. Official government figures from the Energy Information Administration are due later on Wednesday.
Traders will also watch an OPEC+ meeting on Sunday, where producers are expected to keep December output targets unchanged, despite most of the seven core members operating below those targets. Additionally, Russian crude exports from Baltic and Black Sea ports may decline next month as domestic refiners increase diesel production under a recent agreement with Washington.