Oil Prices Rise as Saudi Refinery Attack Revives Global Supply Concerns

Oil prices rose more than 1% on Wednesday after an attack on a refinery in Saudi Arabia renewed concerns about supply disruptions from one of the world’s largest crude exporters.

Brent crude futures gained $1.59, or 1.4%, to $115.47 a barrel by 7:35 a.m. Saudi time. US West Texas Intermediate crude climbed $1.43, also up 1.4%, to $101.33 a barrel.

The gains followed a decline of nearly $2 on Tuesday, when hopes for diplomatic progress in the Middle East eased prices before renewed concerns over attacks on Saudi facilities unsettled the market.

ING commodity strategists said traders were continuing to factor in a greater risk of renewed escalation in the conflict.

“Oil prices remain elevated as the market waits for greater clarity on President Trump’s next move toward Iran,” the strategists said.

They added that if the US elections passed without renewed strikes on Iran, the market’s risk premium could begin to decline. However, uncertainty over Washington’s next steps continues to influence price movements.

The latest increase highlights the sensitivity of oil markets to developments in the Gulf, where security threats can disrupt production, exports and shipping routes. Saudi Arabia’s role as a major supplier means attacks on its energy infrastructure can quickly affect expectations about global availability.

Market participants were also assessing new figures on US crude inventories. Crude stocks fell by 2.03 million barrels in the week ended October 23, according to market sources citing data from the American Petroleum Institute.

The decline contrasted with a Reuters poll of analysts, which had estimated that inventories would rise by about 15,000 barrels over the same period.

Traders were awaiting the US Energy Information Administration’s official weekly inventory report, due later on Wednesday, for a clearer picture of supply and demand in the world’s largest oil-consuming economy.

Attention is also turning to Sunday’s meeting of OPEC+ producers, where members are expected to maintain their December oil production targets, according to people familiar with the matter.

The group includes Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman among its seven core members. Production in most of these countries remains below their agreed targets, limiting the amount of additional supply they are currently delivering to the market.

Meanwhile, Russian crude exports through Baltic and Black Sea ports could decline next month, traders said. Domestic refiners are expected to increase diesel production following a deal reached with Washington this month, potentially reducing the volumes of crude available for export.

With geopolitical tensions, inventory data and production decisions all influencing trading, oil prices remain sensitive to developments that could alter expectations for global supply.