Oil Prices Rise Over 1% After Houthis Claim Saudi Refinery Attack
International petroleum benchmarks advanced over one percent following reports of a missile strike targeting Saudi Arabia's principal oil refinery. As of 04:35 GMT on October 28, Brent futures were up $1.59, or 1.4%, at $115.47 a barrel and WTI was up $1.43, or 1.4%, at $101.33, Reuters reported. The Houthis claimed a missile attack on a major Saudi refinery on Tuesday; Saudi authorities had not immediately verified the reported strike. Saudi Arabian authorities did not issue immediate public confirmation regarding physical impact on the 550,000 barrel-per-day petroleum processing facility. Energy market pricing rebounded swiftly after recording a downward decline of approximately two dollars during Tuesday trading sessions. Commodity analysts at ING observed that global energy markets continue pricing in elevated risk premiums tied to potential conflict expansion. Financial strategists noted that market participants are closely watching for strategic policy decisions from Washington concerning military engagement with Iran.
Analysts said a sustained pause in further regional strikes could reduce the risk premium in crude markets. United States crude storage inventories decreased by 2.03 million barrels during the week concluding October 23, according to industry sources. Independent analysts surveyed by Reuters projected that domestic inventory tallies actually increased by roughly 15,000 barrels during the same window. Energy traders are awaiting formal weekly inventory documentation from the United States Energy Information Administration for definitive supply clarity. Oil market observers are tracking an upcoming ministerial session scheduled for Sunday where OPEC+ producers will review production targets. Informed industry sources indicated that the exporting coalition is expected to maintain steady production quotas for December output schedules. Current production volumes across core OPEC+ member nations, including Saudi Arabia, Russia, and Iraq, remain below established output ceilings.
Saudi Arabia raised the operating capacity of its 1,200-kilometer East-West Pipeline from Abqaiq to Yanbu to 7 million barrels per day in 2026 to bypass the Strait of Hormuz, according to Investing.com.
Global oil inventories fell by 500 million barrels since February 2026, with US commercial crude stocks sitting 3% below their five-year average, according to Investing.com.
An Investing.com analysis described separate missile and drone interceptions in Saudi Arabia, but those accounts should not be treated as confirmation that the refinery was hit.
Russian crude shipments from Baltic and Black Sea ports face potential reductions next month as domestic refineries prioritize diesel production. This anticipated export shift follows an understanding concluded between Moscow and Washington regarding refined product supplies. Petroleum investors remain cautious as American leadership evaluates whether to negotiate diplomatic terms or pursue expanded military strikes. Oil traders also monitored US crude-inventory data and an upcoming OPEC+ meeting for signs of near-term changes in supply. Trading records from Singapore showed intraday gains expanding past two dollars a barrel as international market participants digested the security disruption.