Oil prices rise after attack on Saudi refinery revives supply concerns

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Oil prices rose on Wednesday after a reported attack on a Saudi refinery renewed concerns about Middle East supplies amid the conflict involving Iran and its regional allies, reports Reuters.

Brent crude futures rose $1.48, or 1.3%, to $115.36 a barrel by 0140 GMT. US West Texas Intermediate crude gained $1.22, or 1.22%, to $101.12.

Yemen's Iran-aligned Houthis said on Tuesday they had struck Saudi Arabia's biggest oil refinery with a missile, escalating attacks on the world's second-largest crude producer. Saudi authorities did not immediately confirm the strike on the facility, which has a capacity of 550,000 barrels per day.

Prices rebounded after falling nearly $2 on Tuesday as diplomatic efforts in the Middle East eased supply concerns.

The gains came despite expectations of an increase in US crude inventories. Stockpiles were forecast to have risen by about 15,000 barrels in the week ended October 23, according to a Reuters poll of eight analysts.

The OPEC+ group of oil-producing countries is expected to keep its December output targets unchanged at a meeting on Sunday, three people familiar with 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 — remains below their output targets.

Russian crude exports from Baltic and Black Sea ports could fall next month as domestic refiners increase diesel production following a deal with Washington this month, traders said.