Brent Closes at $115.32 as Supply Concerns Mount After Claim of Ras Tanura Targeting
Key Facts
December Brent futures settled at $115.32 a barrel on October 28, up $1.44, or about 1%, according to data cited by Reuters via StreetInsider. West Texas Intermediate rose $2.88, or 3%, to $102.78 a barrel in the same session. Both benchmarks moved higher as concerns resurfaced over disruptions to energy supplies in the Middle East. Reuters linked the concerns to continued fighting in Yemen, the Houthis' claim that they had targeted a Saudi refinery, and the possibility that the United States could resume strikes on Iran. Saudi authorities did not immediately confirm the claim concerning the refinery.
The Houthis said on Tuesday that they had targeted the Ras Tanura refinery with a missile, according to a Reuters report published by MarketScreener. The report described the facility as Saudi Arabia's largest oil refinery, with refining capacity of 550,000 barrels per day. It said Saudi authorities had not immediately confirmed the strike. The refinery's size puts the claim at the center of concerns about Saudi oil infrastructure, but the Reuters report cited no Saudi confirmation that it had been hit. The report said the refinery was shut for a period in the early months of the Iran war as a precaution.
On October 29, West Texas Intermediate futures fell 92 cents, or 0.9%, to $101.86 a barrel after rising 3% in the previous session, according to Reuters via MarketScreener. Reuters said traders weighed the risk of a wider Middle East conflict against the possibility of renewed diplomatic efforts between the United States and Iran. Thursday's decline followed Wednesday's gains, which took U.S. crude to a settlement of $102.78. The report cited regional supply risks alongside the prospect of renewed diplomacy in explaining the price decline. It did not say that either factor alone explained the market move.
The risk backdrop extended to fighting in Yemen: Yemeni government forces said the Houthis attacked Aden airport on Wednesday, according to a Reuters report on October 28. The report said the attack came after the group warned people to stay away from the airport and called for its evacuation. It said fighting had intensified in the country, which it described as caught up in the broader Middle East conflict. In another report, Reuters linked supply concerns to continued fighting in Yemen and the claim involving the Ras Tanura refinery. It also cited concerns that the United States could resume strikes on Iran after the U.S. midterm elections the following week.
Ahead of the U.S. inventory data for the week ended October 23, a Reuters poll of 8 analysts showed an expected increase of about 15,000 barrels in crude stocks. Those estimates were from the analyst poll cited by Reuters, while the U.S. Energy Information Administration set November 4, 2026, as the release date for its next report. A near-term development in the production market is the OPEC+ meeting scheduled for Sunday. 3 people familiar with the matter expected the countries to leave December oil production targets unchanged. Reuters reported that this expectation was in line with market forecasts.