Brent oil rises above $115 after claimed attack on Saudi refinery

Brent crude futures rose above $115 a barrel on Wednesday, 28 October, as energy traders assessed the risk of supply disruption following a Houthi-claimed missile attack on a Saudi Arabian refinery. Daily Sabah reported the December benchmark at $115.90 per barrel during the morning, up $2.02, or 1.8%, on the previous session.

The Houthi movement in Yemen said it had struck one of Saudi Arabia's largest refineries. Saudi officials had not confirmed that the facility was hit in the reports reviewed. There was no independently verified account of physical damage, casualties or a reduction in refinery production.

US West Texas Intermediate crude futures also rose, reaching $101.91 a barrel according to the same market report. Analysts attributed the move to concern that conflict in the Middle East could further threaten oil supplies, although the size of any real supply interruption was not yet known. Neither the claimed strike's effect on fuel inventories nor the timing of any refinery shutdown could be established from the reports, which focused mainly on prices and market sentiment.

NV.ua and Romanian agency Mediafax also reported the higher Brent price after the Houthi claim. They described the rise as a market reaction to the threat rather than proof that the claimed refinery damage had occurred.

ING commodity analysts said prices reflected a greater perceived chance of further escalation and uncertainty about US policy towards Iran. Their assessment was a market view, not an official forecast of a supply shutdown.

Brent is the main benchmark for internationally traded oil, including much of the fuel imported by European countries. A prolonged price rise can influence diesel and petrol costs, although changes at filling stations depend on refining margins, taxes, currency rates and contracts. No direct European fuel shortage was reported in the source material.

Traders were also awaiting updated US oil-inventory figures and further producer discussions. The immediate confirmed development was the market-price rise; the Houthi claim and its possible implications for Saudi production remained subject to verification.