Oil prices rose nearly 2% in Asian trade after Yemen's Houthi rebels said they had launched a missile strike on Saudi Arabia's largest refinery. Saudi officials have not confirmed the report.
Brent futures rose $2.14, or 1.88%, to $116.02 a barrel. U.S. light crude rose $1.94, or 1.94%, to $101.84 a barrel.
The Iranian-backed Houthis said they had struck a facility with a processing capacity of 550,000 barrels per day. The rise in quotes followed a decline of nearly $2 in the previous trading session.
The market is monitoring the risk of a new escalation
According to ING commodity strategists, the market continues to see an increased likelihood of a new escalation of tensions in the Middle East.
„Oil prices remain high as the market awaits greater clarity on President Trump's next move towards Iran,“ analysts said.According to their assessment, a possible passage of the US midterm elections without new strikes against Iran could begin to reduce the risk premium in oil prices.
Additional support for quotes was provided by data on US inventories. According to market sources, citing the American Petroleum Institute, crude oil inventories fell by 2.03 million barrels in the week to October 23. Analysts surveyed by Reuters expected an increase of about 15,000 barrels. The official report from the US Energy Information Administration is yet to be published.
OPEC+ and Russian exports also in focus
Investors are also watching the meeting of OPEC+ countries, scheduled for Sunday. According to sources familiar with the matter, producers are expected to keep their December production targets unchanged.
Production from most of the main participants in the discussed production cuts and increases - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman - remains below target levels.
Meanwhile, traders expect Russian crude oil exports from Baltic and Black Sea ports to decline in November. The reason is a forecast increase in diesel production at Russian refineries after an agreement with Washington was concluded this month.
Sources: bta.bg