Oil prices jump after reported attack on Saudi refinery

Oil prices climbed on Wednesday after Yemen’s Houthi group claimed a missile strike on Saudi Arabia’s largest oil refinery, raising fresh concerns about supply disruptions across the Middle East amid the ongoing conflict involving Iran and its regional allies.

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.

The Houthis claimed on Tuesday that they had targeted Saudi Arabia’s largest oil refinery with a missile. The reported attack heightened concerns about the security of energy infrastructure in the world’s biggest crude oil-exporting country. Saudi authorities had not immediately confirmed the strike on the facility, which has a processing capacity of 550,000 barrels per day.

The latest gains followed a decline of nearly $2 a barrel on Tuesday, when diplomatic efforts in the Middle East eased some concerns about potential supply disruptions. However, the reported Houthi attack renewed fears that escalating regional tensions could threaten oil production and transportation.

Market concerns persisted despite expectations of an increase in US crude inventories. A Reuters poll of eight analysts indicated that US crude stockpiles rose by approximately 15,000 barrels in the week ended October 23.

Meanwhile, the OPEC+ alliance is expected to maintain its December oil production targets at a meeting on Sunday, according to three sources familiar with the matter. The expected decision is in line with market forecasts.

Production in most of the seven core OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — remains below their respective output targets.

Separately, Russian crude exports from Baltic and Black Sea ports could decline next month as domestic refineries increase diesel production. Traders said the expected shift followed an agreement between Moscow and Washington earlier this month.

The latest developments have added to uncertainty in global oil markets, where geopolitical tensions, supply concerns and production decisions continue to influence price movements.