Oil prices rise after attack on Saudi Arabian refinery reignites supply concerns

Oil Prices Surge Following Attack on Saudi Arabian Refinery Amid Supply Fears

By Colleen Howe

Market Reaction and Supply Concerns

BEIJING, Oct 28 (Reuters) - Oil prices rose on Wednesday after an attack on a refinery in Saudi Arabia, the world's biggest crude exporter, renewed concerns around the risks to supply in the Middle East stemming from the conflict with Iran and its proxies.

Price Movements in Global Oil Markets

Brent crude futures rose $1.48, or 1.3%, to $115.36 a barrel as of 0140 GMT. US West Texas Intermediate crude rose $1.22 or 1.22% to $101.12.

Details of the Saudi Refinery Attack

Yemen's Iran-aligned Houthis said on Tuesday they had hit Saudi Arabia's biggest oil refinery with a missile, intensifying their strikes against the world's second-largest crude producer. Saudi authorities did not immediately confirm the strike on the 550,000 barrel per day facility.

Recent Volatility and Inventory Data

Prices were swinging back after dropping nearly $2 on Tuesday as talks in the Middle East helped ease supply worries.

That was despite data expected to show a rise in crude inventories in the US. Crude oil stockpiles rose by about 15,000 barrels in the week ended October 23, according to a poll of eight analysts by Reuters.

OPEC+ Output and Russian Export Adjustments

The OPEC+ oil-producing countries are expected to keep their December oil output targets steady on Sunday, three people with knowledge of the matter told Reuters, in line with market expectations. Production in most of the seven core OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — is below their output targets.

Crude oil exports from Russia's Baltic and Black Sea ports could fall next month as domestic refiners increase diesel output following a deal with Washington this month, traders said.

(Reporting by Colleen Howe; Editing by Kate Mayberry)