Oil prices rose on Wednesday as traders assessed supply risks stemming from the escalating conflict between Yemen’s Houthi group and Saudi Arabia, alongside prospects for increased Russian diesel exports.
Brent crude futures rose 0.8% to $106.58 a barrel by 0030 GMT, while US West Texas Intermediate (WTI) crude gained 0.9% to $94.94 a barrel.
Brent had fallen 0.9% on Tuesday, while US crude rose 0.4%.
Hiroyuki Kikukawa, chief analyst at Nissan Securities Investment, said concerns over supply stemming from the conflict between the Houthis and Saudi Arabia were driving prices higher.
He added that increased Russian diesel exports could ease supply shortages, limiting sharp price volatility. He expected WTI to trade between $90 and $100 a barrel.
Saudi Arabia’s Energy Ministry said Wednesday that a Houthi attack targeted an administrative building belonging to Saudi Aramco in the city of Dhahran, causing a limited fire.
The Houthis have launched ballistic missiles and drones at Saudi Arabia in recent days.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) said Tuesday that production by the OPEC+ alliance rose sharply in September, driven by higher Saudi output, despite disruptions to shipping through the Strait of Hormuz linked to the war involving Iran.
Reuters quoted two senior Iranian officials as saying that Tehran is using new methods to target vessels passing through the Strait of Hormuz, with the aim of keeping oil prices high and influencing the US midterm elections.
Source: Reuters
