Oil prices rose on Wednesday after Houthi attacks hit a Saudi Aramco administrative building in Dhahran and the International Energy Agency warned of diesel constraints. Traders now watch Saudi energy infrastructure and US-Iran talks for the next move.
West Texas Intermediate futures rose 1.2% to $95.30 a barrel by 6:20 a.m. ET on Wednesday, while Brent crude was 0.7% higher at $106.46. Prices pulled back from earlier gains as investors digested the IEA's monthly report.
Investing.com reported WTI up 0.5% at $94.65 per barrel in earlier trading, with Brent for December at $105.80.
Houthi strikes reach Aramco's Dhahran compound
The Saudi Ministry of Energy said an administrative building belonging to Saudi Aramco had been attacked overnight in Dhahran, with no injuries reported. Investing.com said only a limited fire was reported at the facility.
It follows a series of Houthi strikes on Riyadh over the past week, including a fatal strike on the city's international airport, according to CNBC. Meanwhile, Al Jazeera reported that a Saudi-led coalition struck Houthi energy terminals and fuel reserves in Yemen.
According to investingLive, the incident did not confirm any direct loss of oil production, but the threat of attacks spreading to pipelines or export terminals is lifting the risk premium.
Hormuz and the IEA add to supply worries
The IEA's October Oil Market Report warned that diesel market constraints could continue well into 2027. Separately, the UK Maritime Trade Operations authority said at least two ships were struck in Hormuz on Tuesday.
U.S. Central Command rejected an Iranian naval commander's claim that Iran controls the strait. CENTCOM said in an X post: "RGC’s navy commander has no navy," per CNBC.
What traders watch next
Paul Tudor Jones said on CNBC that oil may rally another $20-$25 due to the Iran conflict. InvestingLive said a breakthrough in US-Iran negotiations will trigger a strong selloff, while a prolonged stalemate or re-escalation will likely take oil back above $100.
Sources: CNBC, Investing.com, investingLive
Trading involves risk.
Risk Disclaimer
