Global crude oil prices rose sharply on Wednesday after Yemen’s Iran-aligned Houthis reportedly targeted Saudi Arabia’s largest oil refinery, renewing concerns over potential supply disruptions in the Middle East.
Brent crude futures for December delivery climbed $1.55, or 1.36 per cent, to $115.43 a barrel. US West Texas Intermediate (WTI) crude gained 1.43 per cent to $101.32 a barrel.
The Houthis claimed responsibility for targeting the refinery, raising fresh concerns about regional oil supplies despite recent diplomatic efforts to ease tensions. Saudi authorities, however, had not confirmed the reported strike on the facility, which has a processing capacity of 550,000 barrels per day.
The price surge reversed part of the previous session’s losses, when crude fell by nearly $2 a barrel as diplomatic engagement eased fears of supply disruptions.
Investors had also been monitoring expectations of an increase in US crude inventories.
In a separate development, representatives from Saudi Arabia, Turkey and Pakistan reportedly held talks with Iranian officials in Tehran to defuse regional tensions. The four countries agreed to continue dialogue aimed at strengthening cooperation on peace and security.
OPEC+ is expected to keep December output targets unchanged, while production by key members remains below quotas.
The West Asian conflict has heightened risks around the Strait of Hormuz, which handles about 20 per cent of global energy shipments.
Brent crude surged above $117 a barrel last week after attacks on oil tankers, fuelling concerns over supply disruptions.
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