Crude Oil Prices Spike After Attack on Saudi Arabian Refinery

By Adedapo Adesanya

Crude oil prices rose by 1 per cent on Wednesday morning after Yemen’s Iran-aligned Houthi group claimed responsibility for a missile attack on Saudi Arabia’s largest oil refinery, renewing concerns over global crude supply.

Brent crude futures gained $1.59 to close at $115.47 per barrel, while US West Texas Intermediate (WTI) crude increased by $1.43 to $101.33 per barrel.

Previously, prices had dropped $2 as traders assessed the potential impact of escalating tensions in the Middle East on global energy supplies.

The Houthis said on Tuesday that they had struck Saudi Arabia’s largest refinery, which has a processing capacity of 550,000 barrels per day.

The Ras Tanura Refinery remains the major target of these latest attacks, as it combines substantial refining capacity with a critical export terminal on the Persian Gulf.

Saudi officials reported intercepting three ballistic missiles aimed at the kingdom’s Eastern Province and four drones directed toward southern Saudi Arabia on Tuesday.

Saudi air defences also intercepted two missiles targeting Riyadh, where falling debris damaged a building, a construction site and a vehicle, according to Saudi Civil Defence statements reported by the Associated Press.

Separately, the Houthis claimed a direct hit on Saudi Arabia’s Defence Ministry in Riyadh and attacks on military aircraft.

Market analysts noted that oil markets are pricing in a greater likelihood of renewed escalation, with investors awaiting clarity on US President Donald Trump’s next move regarding Iran.

The American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 2.031 million barrels in the week ending October 23. In the week prior, US crude oil inventories fell by a staggering 4.93 million barrels.

Commercial crude oil inventories excluding the SPR have lost more than 58 million barrels over the last 28 weeks, but US crude inventories are still only 7 million below where they were at the beginning of the year.

The market will await the official weekly inventory report from the US Energy Information Administration (EIA) later on Wednesday.

Oil traders are also monitoring an upcoming meeting by the Organisation of the Petroleum Exporting Countries (OPEC) on Sunday, where producers are expected to maintain their December output targets.

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

Separately, crude oil exports from Russia’s Baltic and Black Sea ports could decline next month as domestic refiners increase diesel production following a deal with the US this month.