Oil prices rise on Yemen fighting, Saudi refinery attack
USO•Oil prices rose about 1% on Wednesday as fighting in Yemen, an attack claimed on a Saudi refinery and concerns about possible U.S. strikes on Iran raised supply-disruption concerns. Brent settled at $115.32 a barrel and U.S. WTI at $102.78; U.S. crude stockpiles fell 1.9 million barrels.
1. Prices climb on supply concerns
Brent futures rose $1.44, or 1%, to settle at $115.32 per barrel, while U.S. West Texas Intermediate crude rose $2.88, or 3%, to $102.78. The gains pushed Brent back into overbought territory for the fourth time in five days.
2. Fighting and refinery attack
Yemeni government forces said the Houthis attacked Aden airport on Wednesday. The Houthis said they hit Saudi Arabia’s biggest oil refinery, which has capacity of 550,000 barrels per day, with a missile on Tuesday; Saudi authorities had not immediately confirmed the strike. Traders also weighed concerns that the U.S. could resume strikes on Iran.
3. Stockpiles and OPEC+ outlook
The U.S. Energy Information Administration reported that crude stockpiles fell 1.9 million barrels in the week ended October 23, compared with analysts’ forecast for a 15,000-barrel build. OPEC+ producers are expected to keep December oil output targets steady at a meeting on Sunday.
