Saudi refinery attack lifts Brent crude above $115 a barrel

Oil prices climbed by more than 1% on Wednesday after a reported missile attack on a major Saudi Arabian refinery revived concerns about supply disruption in the Middle East, according to Reuters.

Brent crude futures rose $1.59, or 1.4%, to $115.47 a barrel at 0435 GMT on 28 October. US West Texas Intermediate (WTI) crude gained $1.43, also 1.4%, to $101.33 a barrel.

The gains followed a decline of nearly $2 in oil prices on Tuesday, when developments in Middle East diplomacy had eased some concerns about potential supply disruptions. The latest move highlighted the sensitivity of crude markets to changes in the region’s security outlook. Reuters+1

Houthi group claims missile strike on Saudi refinery

Yemen’s Iran-aligned Houthi group said on Tuesday that it had targeted Saudi Arabia’s largest oil refinery with a missile. The facility has a reported processing capacity of 550,000 barrels per day.

Saudi authorities had not immediately confirmed the reported strike, according to Reuters. The available reporting does not establish the extent of any damage or confirm that the incident resulted in a loss of refinery output.

Saudi Arabia is the world’s largest crude oil exporter, making security risks involving its energy infrastructure significant for international oil markets. A confirmed disruption to major facilities could affect the availability of petroleum products and market expectations for regional supply.

For now, the reported attack has renewed concerns about potential disruption rather than established the scale of any physical supply loss. Anadolu Ajansı+1

Brent crude and WTI rebound amid Middle East uncertainty

The latest increase in oil prices came after crude futures fell by nearly $2 in the previous session. The earlier decline followed diplomatic developments that had temporarily reduced market concerns about supply risks.

The price recovery indicates that traders remain sensitive to the possibility of renewed escalation involving Iran and regional groups. ING commodity strategists said the market was awaiting greater clarity on US President Donald Trump’s next steps towards Iran. Investing.com+1

Brent crude is an international benchmark widely used to price oil produced in several regions, while WTI is a key US benchmark. Their movements influence procurement decisions across the energy industry and can feed into pricing considerations for refiners, fuel distributors and industrial consumers.

However, the quoted prices represent a snapshot from the reported trading session on Wednesday morning, rather than the final settlement prices for the day.

US crude inventories and OPEC+ decisions remain in focus

Geopolitical developments are not the only factor influencing the oil market. Traders are also assessing US crude inventories and decisions by major oil-producing countries.

A Reuters poll of eight analysts cited in earlier reporting indicated that US crude inventories were expected to increase by approximately 15,000 barrels in the week ended 23 October. That figure was an analyst estimate, not an official inventory result. Investing.com+1

Meanwhile, OPEC+ producers were expected to maintain their December production targets at an upcoming meeting on Sunday, according to people familiar with the discussions cited by Reuters. The group’s output decisions are relevant to expectations for global supply, although production targets do not necessarily equate to actual production.

Reuters also reported that Russian crude exports from Baltic and Black Sea ports could decline in November as domestic refineries increase diesel production. This was a reported possibility rather than a confirmed reduction in exports. Investing.com+1

These factors leave the market balancing geopolitical risk against expected production, inventory and export developments.

What higher oil prices mean for businesses

A sustained increase in crude prices could raise input-cost pressures for businesses that purchase fuel or rely heavily on energy-intensive operations. Airlines, road freight operators, shipping companies, manufacturers and fuel distributors are among the businesses that monitor changes in oil prices when managing procurement and operating budgets.

The eventual effect depends on how long prices remain elevated, the type of fuel purchased, contractual arrangements, hedging policies and the extent to which businesses can pass higher costs on to customers.

For refiners, crude prices are only one part of the commercial equation. Refining margins also depend on the prices of petrol, diesel, jet fuel and other products, alongside operating costs and refinery utilisation.

The reported refinery attack does not, by itself, establish that supply has been reduced or that businesses will face a particular increase in fuel costs. Those outcomes would depend on confirmed operational impacts and subsequent market developments.

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