Oil prices rise about 2% as Yemen fighting stokes supply fears
USO•Oil prices climbed about 2% as fighting in Yemen and an attack on a Saudi refinery raised supply concerns; US crude inventories fell 1.9 million barrels in the week ended October 23.
1. Prices gain on supply fears
Brent rose $1.81, or 1.6%, to $115.69 a barrel, while US West Texas Intermediate gained $2.52, or 2.5%, to $102.42. Brent returned to overbought territory for the fourth time in five sessions.
2. Conflict raises disruption concerns
Yemen's Houthis attacked Aden airport on Wednesday, officials said, after the group warned people to evacuate as fighting escalated. The Houthis said on Tuesday they had struck Saudi Arabia's largest oil refinery, a 550,000-barrel-per-day facility; Saudi authorities had not immediately confirmed the attack. Qatari mediators presented Iran with a new draft peace proposal, but a senior Iranian official called the ideas unacceptable.
3. Inventories and output outlook
The US Energy Information Administration reported a 1.9 million-barrel decline in crude stocks for the week ended October 23, compared with analysts' forecast of a 15,000-barrel build. OPEC+ producers are expected to keep December output targets steady at a meeting on Sunday, sources said.
