Oil prices rose by more than $2 on Wednesday after a reported attack on a Saudi Arabian refinery renewed supply concerns. Both Brent and WTI climbed, while the market awaits US inventory data and an OPEC+ meeting.
Oil prices rose by more than $2 on Wednesday after an attack on a refinery in Saudi Arabia, the world's top crude exporter, renewed concerns about supply risks tied to conflicts in the Middle East. Prices swung higher after dropping nearly $2 on Tuesday.
Brent crude futures rose $2.02, or 1.8%, to $115.90 a barrel as of 0735 GMT. US West Texas Intermediate crude gained $2.01, or 2.0%, to $101.91.
Houthis claim a hit on Saudi Arabia's biggest refinery
Yemen's Iran-aligned Houthis said on Tuesday they had hit Saudi Arabia's biggest oil refinery with a missile, intensifying their strikes against the world's second-largest crude producer. Saudi authorities did not immediately confirm the strike on the 550,000 barrel-per-day facility.
ING commodity strategists said the market is still pricing in a greater likelihood of re-escalation. They added that if the elections pass without renewed strikes on Iran, that might be enough for the market's risk premium to start eroding.
US inventories and OPEC+ in focus
Meanwhile, US crude oil stocks eased, according to market sources citing American Petroleum Institute data. Crude stocks fell by 2.03 million barrels in the week ended October 23, the sources said. However, analysts polled by Reuters estimated that crude inventories rose by about 15,000 barrels, and the market awaits the US Energy Information Administration's official weekly report.
The market will also monitor an industry meeting on Sunday, where OPEC+ producers are expected to keep their December oil output targets steady, according to people with knowledge of the matter.
Source: Reuters via Investing.com
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