Oil prices rise after attack on Saudi Arabian refinery reignites supply concerns

BEIJING: Oil prices rose on Wednesday after an attack on a refinery in Saudi Arabia, the world's biggest crude exporter, renewed concerns about supply risks in the Middle East stemming from the conflict with Iran and its proxies.

Brent crude futures rose US$1.48, or 1.30 per cent, to US$115.36 a barrel as of 0140 GMT. US West Texas Intermediate crude rose US$1.22, or 1.22 per cent, to US$101.12.

Yemen's Iran-aligned Houthis said on Tuesday they had hit Saudi Arabia's biggest oil refinery with a missile, intensifying their strikes against the world's second-largest crude producer.

Saudi authorities did not immediately confirm the strike on the 550,000-barrel-per-day facility.

Prices were rebounding after dropping nearly US$2 on Tuesday as talks in the Middle East helped ease supply concerns.

This came despite data expected to show a rise in crude inventories in the US. Crude oil stockpiles rose by about 15,000 barrels in the week ended Oct 23, according to a poll of eight analysts by Reuters.

The OPEC+ oil-producing countries are expected to keep their December oil output targets steady on Sunday, three people with knowledge of the matter told Reuters, in line with market expectations.

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

Crude oil exports from Russia's Baltic and Black Sea ports could fall next month as domestic refiners increase diesel output following a deal with Washington this month, traders said.