Global Oil Prices Rise Amid Saudi Supply Concerns

Global crude oil prices rose on Wednesday as traders weighed potential supply disruptions in Saudi Arabia against the prospect of increased diesel exports from Russia.

Brent crude futures gained 89 cents, or 0.8%, to $106.58 a barrel at 12:30am GMT on Wednesday. US West Texas Intermediate (WTI) crude futures rose 80 cents, or 0.9%, to $94.94 a barrel at the same time.

In the previous session, Brent crude settled down 0.9% at $105.69 a barrel, while WTI rose 0.4% to $94.14.

Traders are assessing the risks to oil supplies from escalating tensions between Saudi Arabia and Yemen’s Iran-backed Houthi movement, alongside the possibility of increased diesel supplies from Russia.

Saudi Arabia’s Energy Ministry said on Wednesday that the Houthis had attacked an administrative building belonging to state-owned oil company Saudi Aramco in the eastern city of Dhahran. The attack caused a limited fire, according to the ministry.

As one of the world’s major oil producers, Saudi Arabia plays a significant role in global energy markets. Any escalation that disrupts its oil production or exports could put upward pressure on prices.

Meanwhile, the prospect of increased diesel supplies from Russia could alter the balance of fuel supply in international markets.

With traders weighing these competing risks, global oil prices remain sensitive to developments in the Middle East and changes in fuel supply expectations.