- Oil prices rose over 1 percent due to renewed supply concerns following an attack on a Saudi Arabian refinery.
- Brent crude futures increased by $1.59 to $115.47 a barrel, while US West Texas Intermediate crude rose by $1.43 to $101.33.
- US crude oil stocks reportedly fell by 2.03 million barrels, but analysts suggest inventories may have actually increased by about 15,000 barrels.
- OPEC+ is expected to maintain its December oil output targets during an upcoming industry meeting, with production among core members currently below targets.
SINGAPORE: Oil prices climbed more than 1 percent on Wednesday after an attack on a refinery in Saudi Arabia renewed concerns around supply risks from the major exporter.
Brent crude futures gained $1.59, or 1.4 percent, to $115.47 a barrel as of 07:35 a.m. Saudi time. US West Texas Intermediate crude rose $1.43 or 1.4 percent to $101.33.
Prices swung higher after dropping nearly $2 on Tuesday.
For now, the market is still pricing in a greater likelihood of re-escalation, ING commodity strategists said on Wednesday.
“Oil prices remain elevated as the market waits for greater clarity on President Trump’s next move toward Iran,” said ING strategists.
“If we get past the elections without renewed strikes on Iran, that might be enough for the market’s risk premium to start eroding,” they added.
Meanwhile, US crude oil stocks eased, according to market sources citing data from the American Petroleum Institute. Crude stocks fell by 2.03 million barrels in the week ended Oct. 23, the sources said.
However, analysts polled by Reuters estimated that crude inventories rose by about 15,000 barrels in the week. The market awaits the US Energy Information Administration’s official weekly inventory report, due later in the day, for more clarity.
The market will also monitor an upcoming industry meeting on Sunday, where OPEC+ oil producers are expected to keep their December oil output targets steady, according to people with knowledge of the matter.
Production in most of the seven core OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — is below their output targets.
Crude oil exports from Russia’s Baltic and Black Sea ports could fall next month as domestic refiners increase diesel output following a deal with Washington this month, traders said.
