Oil prices jump amid new threats to Saudi energy infrastructure

Highlights

Brent rose 1.74%, and WTI gained 1.87%.
Houthis claimed an attack on a Saudi refinery.
U.S. crude inventories fell by 2.03 million barrels.

January Brent futures rose 1.74% to $111.31 a barrel, while December West Texas Intermediate futures gained 1.87% to $101.77. Traders were assessing the risk of further attacks on Saudi energy infrastructure, Reuters reports. Concerns about potential disruptions to regional oil exports also supported prices.

Saudi refinery attack raises supply concerns

The Iran-aligned Houthis said Tuesday they had struck Saudi Arabia's largest oil refinery with a missile. Saudi authorities had not immediately confirmed the reported attack on the facility, which has a processing capacity of approximately 550,000 barrels per day.

The claim followed a series of attacks affecting energy installations and shipping routes across the region. On Wednesday, the Houthis also urged people to evacuate Aden's international airport, raising concerns about further escalation.

The U.S. military separately advised vessels without essential business in the Gulf of Oman and Strait of Hormuz to avoid the area. Ships continuing through the waterway were warned to allow additional transit time because of increased traffic and blockade enforcement operations.

Inventories fall as Saudi exports remain resilient

U.S. crude inventories declined by approximately 2.03 million barrels in the week ended Oct. 23, according to preliminary American Petroleum Institute data. Analysts had expected a modest increase of 15,000 barrels.

The unexpected draw provided additional support for prices ahead of official Energy Information Administration figures due later Wednesday.

Despite repeated attacks, Saudi crude exports have remained relatively strong. Vortexa estimates shipments at approximately 6.5 million barrels per day in October, compared with 6.6 million in September.

The kingdom has also increased shipments through its Red Sea facilities, helping offset risks along Persian Gulf routes. However, differences among shipping data providers reflect growing difficulties tracking tankers that disable location signals for security reasons.

Traders watch OPEC+ and risks to oil shipments

The next test for oil prices will be whether regional tensions translate into sustained supply losses. The Strait of Hormuz remains a critical export route, and additional restrictions on tanker movements could raise transport costs even if production continues.

OPEC+ producers are expected to maintain their December output targets at a meeting Sunday. Several major members are already producing below their targets, limiting the immediate effect of leaving quotas unchanged.

Traders are also monitoring U.S. policy toward Iran ahead of the Nov. 3 midterm elections. Renewed military action could increase the geopolitical premium embedded in crude prices, while signs of de-escalation might reduce it.

For now, the combination of refinery security concerns, falling U.S. inventories, and uncertainty over shipping routes is supporting oil prices. Whether the rally continues will depend on confirmed damage to energy infrastructure, actual export disruptions, and the direction of regional tensions.

We also reported U.S. Iran war costs rise as Trump says conflict ends at his discretion.

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