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Source: Newsmaker.id
Oil prices climbed more than 2% on Wednesday (October 28) after an attack on an oil processing facility in Saudi Arabia heightened concerns regarding potential supply disruptions. Brent crude reached US$116.26 per barrel, while WTI stood at US$103.53 per barrel.
The Iran-aligned Houthi group claimed responsibility for an attack on one of Saudi Arabia’s largest oil refineries, allegedly carried out using missiles. The Saudi government has yet to provide direct confirmation regarding the attack on the facility, which has a processing capacity of approximately 550,000 barrels per day.
The rebound follows a decline of nearly US$2 in oil prices on Tuesday. The market continues to factor in a risk premium due to the possibility of an escalating conflict, while investors await clarity on the actions U.S. President Donald Trump might take regarding Iran.
According to analysts at ING, if the U.S. election period passes without any new attacks involving Iran, the risk premium currently embedded in oil prices could begin to diminish. However, as long as the threat of escalation remains, oil prices are likely to stay at elevated levels.
Regarding U.S. inventories, data from the API indicates that crude oil stocks fell by approximately 2.03 million barrels for the week ending October 23. Conversely, a Reuters survey projected a slight increase in inventories, leaving the market to await official data from the EIA for a clearer picture.
Investors are also closely monitoring the upcoming OPEC+ meeting at the end of the week. Major producers are expected to maintain their production targets for December, while Russian oil exports from Baltic and Black Sea ports could potentially decline due to an increase in domestic diesel production. (srh)
Source: Newsmaker.id