Brent crude oil futures rose by $1.48, or 1.3%, to $115.36 per barrel. The price of West Texas Intermediate (WTI) crude oil in the U.S. also increased by $1.22, or 1.22%, to $101.12 per barrel. This price increase occurred after prices had fallen by nearly $2 on Tuesday due to easing concerns about oil supply.
Missile Attack on Saudi Refinery
Yemeni forces announced on Tuesday that they targeted Saudi Arabia's largest oil refinery, with a processing capacity of 550,000 barrels per day, in a missile attack. Saudi officials have yet to confirm the attack on this facility. This action escalates the intensity of Yemeni attacks against the world's second-largest crude oil producer and fuels market concerns.
Read more: Decrease in Oil Prices Following Diplomatic Developments in Iran
Forecast for Increased Oil Reserves in the U.S.
The upward trend in oil prices emerged as data was expected to show an increase in crude oil reserves in the United States. According to a Reuters survey of eight analysts, U.S. crude oil reserves are expected to have increased by about 15,000 barrels in the week ending October 23. This increase may affect the balance of supply and demand in the oil market and lead to further price volatility.
Additionally, three sources familiar with the matter told Reuters that oil-producing countries in the OPEC+ group are expected to maintain their oil production targets for December unchanged at their meeting on Sunday. This aligns with market expectations and indicates no change in the production policies of these countries.
Production levels among the seven main OPEC+ members — including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman — are below their set production targets. This shortfall in production targets could lead to price increases in the near future.
According to published reports, traders have also indicated that Russian crude oil exports from the country's ports in the Baltic and Black Seas may decline next month. This decrease is due to increased diesel production at domestic Russian refineries and an agreement reached this month with Washington.
Read more: Fuel Management for Vehicles Without Fuel Cards in Khorasan · Iran and Russia's Oil and Gas Cooperation Comes into Focus
