Global oil prices rose on Wednesday as traders assessed supply risks from escalating hostilities between Saudi Arabia and Yemen’s Iran-aligned Houthi rebels, alongside expectations of increased Russian diesel exports.
Brent crude futures gained 89 cents, or 0.8 per cent, to $106.58 per barrel, while US West Texas Intermediate (WTI) crude rose 80 cents, or 0.9 per cent, to $94.94.
Market analysts said escalating military tensions in the Middle East were pushing oil prices higher, while the prospect of increased Russian diesel supplies could limit further sharp price increases.
They expected WTI to remain within the $90 to $100 range.
The latest price increase followed a Houthi attack on a Saudi Aramco administrative facility in Dhahran, which reportedly triggered a limited fire.
The strike was part of a week-long campaign involving drone and ballistic missile attacks on Saudi infrastructure.
The campaign also included four separate attacks on Riyadh’s international airport, according to the report.
The Houthis launched the attacks in retaliation for Saudi Arabia’s military support for Yemeni government forces.
Meanwhile, senior Iranian officials reportedly said Tehran was deploying new tactics against shipping in the Strait of Hormuz to keep crude oil prices elevated and influence upcoming US midterm elections.
In response to disruptions linked to the wider US-Iran conflict, Saudi Arabia had earlier increased its oil output, contributing to a broader rise in production by the Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+.
Russia, meanwhile, reiterated that its diesel export agreement with the United States was separate from negotiations over the war in Ukraine.
Moscow also dismissed reports that US envoys had linked the energy arrangement to broader diplomatic discussions on ending the conflict.
The competing pressures from Middle East security risks and potential increases in Russian diesel supplies continue to shape market expectations for oil prices.
