Solid Gold Berjangka – Global oil prices surged during Wednesday’s trading session following reports of an alleged attack on an oil refinery in Saudi Arabia, which has reignited concerns regarding energy supplies from the Middle East. In European trading on Tuesday (October 28), Brent crude hovered around US$116.26 per barrel, while West Texas Intermediate (WTI) traded at approximately US$103.53 per barrel.
The Iran-backed Houthi group in Yemen claimed to have targeted one of Saudi Arabia’s largest oil refineries with missiles. The facility has a processing capacity of roughly 550,000 barrels per day. However, Saudi Arabian authorities have yet to provide official confirmation regarding the attack.
The price hike follows a decline of nearly US$2 in the previous session on Tuesday. Market participants are currently weighing the risks of a new escalation in the Middle East, while also awaiting clarity on the United States' stance toward Iran following a series of recent political developments.
Regarding inventories, the American Petroleum Institute (API) reported a 2.03 million-barrel drop in U.S. crude oil stocks for the week ending October 23. This figure contradicts analyst forecasts, which had anticipated a marginal increase of approximately 15,000 barrels; attention is now focused on the upcoming official report from the Energy Information Administration (EIA).
The market is also looking ahead to the OPEC+ meeting this Sunday, where producers are expected to maintain their December production targets. Several core member nations are currently producing below their assigned quotas, while Russian oil exports may potentially decline next month. The combination of geopolitical risks, falling U.S. inventories, and supply constraints leaves oil prices vulnerable to further upward movement. (srh)