Global oil prices jumped by more than 1% during Wednesday’s trading following claims of an attack on oil facilities in Saudi Arabia, reigniting concerns over supply risks from one of the world’s largest oil producers. Brent crude rose 1.4% to US$115.47 per barrel, while West Texas Intermediate (WTI) climbed 1.4% to US$101.33 per barrel.
The Iran-backed Houthi group in Yemen claimed to have attacked Saudi Arabia’s largest oil refinery using missiles. The facility has a capacity of approximately 550,000 barrels per day. However, Saudi Arabian authorities have yet to provide direct confirmation regarding the attack.
The price increase follows a decline of nearly US$2 in the previous session. Market participants are maintaining a high risk premium as they await clarity on the United States' stance toward Iran, as well as the potential for further escalation in the Middle East.
Regarding U.S. supply, the American Petroleum Institute reported a decline in crude oil inventories of approximately 2.03 million barrels for the week ending October 23. This figure contrasts with analysts' projections of a slight increase, shifting market attention toward the official inventory report from the Energy Information Administration.
Beyond geopolitical factors and U.S. inventory levels, investors are also looking ahead to the OPEC+ meeting later this week. The producer group is expected to maintain its production targets for December, even as several key members continue to produce below their assigned quotas. The combination of supply risks, tensions in the Middle East, and OPEC+ production policy keeps oil prices vulnerable to further upward movement.