Oil Prices Rise Over 1% After Claimed Attack on Saudi Refinery

Oil prices advanced on Wednesday, reversing prior losses, after Yemen's Iran-aligned Houthi group claimed to have attacked a major refinery in Saudi Arabia, reigniting concerns over supply stability in the Middle East. The news pushed the international benchmark Brent crude futures above $115 per barrel.

Geopolitical Tensions Fuel Rally

The price surge was a direct reaction to renewed geopolitical risk in the world's most important oil-producing region. According to a Reuters report, the gains came after the Houthis said on Tuesday they had struck Saudi Arabia's largest oil refinery with a missile.

• As of 0140 GMT, Brent crude futures rose $1.48, or 1.3%, to $115.36 a barrel.
• US West Texas Intermediate (WTI) crude gained $1.22, or 1.22%, to $101.12 a barrel.

Saudi authorities did not immediately confirm the strike on the 550,000 barrel-per-day facility. However, the claim alone was sufficient to unnerve markets, underscoring the vulnerability of critical energy infrastructure amid regional conflicts.

Market Weighs Competing Factors

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Wednesday's price increase marks a sharp reversal from the previous session, where prices had dropped nearly $2 as diplomatic talks in the Middle East had temporarily eased supply worries. The market continues to balance the potential for supply disruptions against signs of weakening demand.

Countering the rally, a Reuters poll of eight analysts indicated that US crude oil stockpiles are expected to have risen by about 15,000 barrels last week. An inventory build typically signals softer demand in the world's largest oil-consuming nation.

OPEC+ Outlook

Looking ahead, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are expected to maintain their current oil output targets for December when the group meets on Sunday. Three sources with knowledge of the matter told Reuters they anticipate policy will remain steady, which is in line with broader market expectations.

This comes as production in most core OPEC+ members is already running below their official output targets. Separately, traders noted that crude oil exports from Russia’s key ports could fall next month as domestic refiners increase their own processing rates.