Oil prices rose on October 28 after Yemen's Houthis said they had hit Saudi Arabia's biggest refinery with a missile, a claim Saudi authorities had not immediately confirmed, with Brent crude trading above $115 a barrel.
Oil prices rose on Wednesday after Yemen's Houthis said they had struck Saudi Arabia's biggest refinery with a missile, reviving concern about supply from the Middle East. Brent crude futures were up $1.14, or 1%, at $115.02 a barrel at 1313 GMT, while United States West Texas Intermediate crude gained $1.71, or 1.7%, to $101.61.
The Houthis said on Tuesday they had hit the 550,000-barrel-per-day facility, intensifying their strikes against the world's second-largest crude producer. Saudi authorities had not immediately confirmed a strike on the plant. The Houthis also called on Wednesday for people to evacuate immediately from the international airport at Aden, where Yemen's Saudi-backed government is based.
Prices had fallen nearly $2 on Tuesday before rebounding, and earlier on Wednesday Brent had risen more than $2 to $115.90 a barrel. Market sources citing American Petroleum Institute data put United States crude stocks down 2.03 million barrels in the week ended October 23, against analyst expectations of a 15,000-barrel build. The industry meeting of OPEC+ producers on Sunday is expected to keep December output targets steady, according to people familiar with the matter.
The strike itself rests on the Houthi claim alone, since Saudi authorities had not confirmed it when Reuters reported the price moves, so this story treats the hit as claimed rather than established. The price levels are reported in two Reuters updates through the day, and the inventory figure comes from market sources citing industry data rather than the government's weekly report, so that part of the picture stays preliminary until the official figures are published.
If damage to a major refinery is confirmed, it would tighten a market already pricing in the risk of escalation ahead of the United States midterm elections on November 3 and a possible American move against Iran. ING commodity strategists said the market's risk premium might only start to erode if the elections pass without renewed strikes on Iran. The next markers are the official United States inventory report later on Wednesday and Sunday's OPEC+ meeting.