Oil up over $2 as Saudi refinery attack reignites supply risk concerns
USO•Oil prices rose more than $2 after Yemen’s Houthis said they struck Saudi Arabia’s largest refinery. Brent gained 1.8% to $115.90 a barrel and U.S. crude rose 2.0% to $101.91.
1. Prices rise after attack
Brent crude futures rose $2.02, or 1.8%, to $115.90 a barrel, while U.S. West Texas Intermediate gained $2.01, or 2.0%, to $101.91. Yemen’s Iran-aligned Houthis said they had hit Saudi Arabia’s largest oil refinery with a missile; Saudi authorities did not immediately confirm the strike on the 550,000-barrel-per-day facility.
2. Supply risks in focus
ING strategists said the market was pricing in a greater likelihood of renewed escalation, with oil elevated as traders awaited clarity on President Trump’s next move toward Iran. They said the risk premium might begin to erode if there were no renewed strikes on Iran after the elections.
3. Inventory and output outlook
U.S. crude stocks fell by 2.03 million barrels in the week ended October 23, market sources said, citing American Petroleum Institute data. Analysts polled by Reuters estimated inventories rose by about 15,000 barrels, and the market awaited the Energy Information Administration’s report. OPEC+ producers were expected to keep December output targets steady at an upcoming meeting; traders also said Russian crude exports from Baltic and Black Sea ports could fall next month.
