Oil prices edged higher again on Wednesday, with Brent crude crossing $115 a barrel after declining in previous sessions. The rebound came after Yemen’s Iran-aligned Houthi group claimed a missile strike on Saudi Arabia’s largest oil refinery, reviving concerns over oil supplies from the Middle East amid the ongoing conflict involving Iran and its proxies.Brent crude gained $1.22, or 1.07%, to trade at $115.10, while US West Texas Intermediate (WTI) crude rose $0.96, or 0.96%, to $100.90.The Houthis on Tuesday said that they targeted the refinery, which has a processing capacity of 550,000 barrels per day. The claimed strike marked an escalation in their attacks against Saudi Arabia, the world’s second-largest crude producer. Saudi authorities had not immediately confirmed the attack.The latest gains followed a decline of nearly $2 in oil prices on Tuesday, when talks in the Middle East helped ease concerns over supply disruptions. The reported strike brought those concerns back into focus.Expectations of higher crude inventories in the US provided another factor for the oil market to consider. US crude stockpiles increased by around 15,000 barrels in the week ended October 23, according to a Reuters poll of eight analysts.On the production front, OPEC+ members are expected to maintain their December oil output targets at Sunday’s meeting, three people with knowledge of the matter told Reuters. The expected decision is in line with market expectations.Output in most of the group’s seven core members, Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman, is already below their respective production targets.Meanwhile, Russia’s crude oil shipments from its Baltic and Black Sea ports could decrease next month, traders said.The potential decline comes as Russian domestic refiners prepare to increase diesel production following a deal with Washington this month.Oil prices have remained volatile as the Middle East crisis enters its eighth month. However, the latest spike remains below the $126-per-barrel peak recorded earlier in the crisis.
