Oil Prices Rise More Than 1% After Reported Attack on Saudi Refinery

Saudi Arabia — Oil Prices Climb After Reported Refinery Attack Raises Supply Concerns

Oil prices rose on Wednesday after a reported attack on a major refinery in Saudi Arabia heightened concerns over potential disruptions to global crude supplies.

Brent crude futures gained $1.59, or 1.4%, to reach $115.47 per barrel as of 0435 GMT. US West Texas Intermediate crude futures advanced $1.43, also 1.4%, to $101.33 per barrel.

The increase came after oil prices fell by nearly $2 during the previous session. Fresh geopolitical uncertainty prompted market participants to reconsider the risk of further supply interruptions in a key oil-producing region.

Yemen’s Iran-aligned Houthi group said on Tuesday that it had launched a missile strike against Saudi Arabia’s largest oil refinery, which has a processing capacity of 550,000 barrels per day. Saudi authorities had not immediately confirmed the reported attack, according to Reuters.

The incident heightened concerns over rising tensions involving Iran and the potential impact on energy infrastructure and export routes. As a major crude oil producer, Saudi Arabia plays an important role in global energy markets, making any prolonged disruption potentially significant for international supplies.

Commodity strategists at ING said oil prices remained elevated as investors awaited further clarity on US President Donald Trump’s next moves concerning Iran. They noted that markets continued to place greater weight on the possibility of renewed escalation.

The strategists also indicated that some of the geopolitical risk premium currently reflected in oil prices could gradually fade if no fresh strikes against Iran occurred following the upcoming elections.

Meanwhile, traders were evaluating new data on US crude inventories. Figures from the American Petroleum Institute showed that US crude stockpiles fell by 2.03 million barrels in the week ending October 23, according to market sources cited in the report.

The decline differed from expectations in a Reuters poll of analysts, who had forecast a modest increase of approximately 15,000 barrels.

Market participants were awaiting official weekly inventory figures from the US Energy Information Administration, due later on Wednesday. The data could offer a more complete assessment of domestic supply conditions and influence oil prices in the near term.

Attention was also turning to Sunday’s meeting of OPEC+ producers. People familiar with the matter indicated that the group was expected to retain its December production targets.

However, production among most of the seven core OPEC+ members—Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman—remained below their respective targets.

Russian supply trends could provide another source of uncertainty for oil markets. Traders said crude shipments from Russian ports on the Baltic and Black seas could decrease next month as domestic refineries raise diesel output following an agreement with Washington earlier in October.

With geopolitical tensions, inventory movements and production decisions all influencing market conditions, oil prices remain vulnerable to incoming developments. Additional attacks on energy infrastructure could push prices higher, while easing tensions or improving supply conditions could reduce some of the upward pressure.