Oil prices rise as Houthis target Saudi energy

New Delhi Global crude oil prices rose on Wednesday after Yemen's Iran-aligned Houthi rebels reportedly targeted Saudi Arabia's largest oil refinery with a missile, renewing concerns about potential supply disruptions in the Middle East. Brent crude futures for December delivery increased by $1.55, or 1.36 per cent, to $115.43 a barrel. US West Texas Intermediate (WTI) crude also gained 1.43 per cent to $101.32 a barrel. The Houthis said they had targeted the refinery, raising fresh concerns about the security of energy infrastructure in the region. However, Saudi authorities had not confirmed the reported strike on the facility, which has a processing capacity of 550,000 barrels per day. The increase in oil prices reversed part of the previous session's losses, when crude fell by nearly $2 a barrel. Prices had declined as diplomatic efforts in the Middle East eased concerns about supply disruptions, despite expectations of an increase in US crude inventories. Meanwhile, representatives from Saudi Arabia, Turkey and Pakistan reportedly held talks with Iranian officials in Tehran to reduce regional tensions. The four countries agreed to continue dialogue aimed at strengthening cooperation on peace and security. Market participants are also watching the upcoming OPEC+ meeting on Sunday, where producers are expected to leave December output targets unchanged, according to reports. Production by several key members, including Saudi Arabia, Russia and Iraq, remains below their respective targets. Saudi Arabia is the world's second-largest crude oil producer and its biggest oil exporter, making developments affecting its energy infrastructure particularly important to global markets. The wider West Asian conflict has also increased concerns over the Strait of Hormuz, a crucial shipping route that handled around 20 per cent of global energy shipments before hostilities began in February. Iranian attacks on oil tankers near the strait pushed Brent crude above $117 a barrel last week, its highest level since April. Prices briefly approached that level again on Monday before retreating. Traders are expected to remain alert to developments in the region, diplomatic efforts and production decisions as they assess the outlook for global oil supplies.