Houthi Missile Targets Saudi Arabia's Largest Refinery, Brent Rises to $115.36

Crude oil prices surged Wednesday following an announcement by Iran-backed Houthis that they targeted Saudi Arabia's largest oil refinery, which has a capacity of 550,000 barrels per day.

Brent crude rose 1.3 percent to reach $115.36 per barrel, while U.S. crude (WTI) climbed 1.22 percent to $101.12. Oil prices had retreated roughly two dollars on Tuesday amid reports of diplomatic talks in the region, before regaining upward momentum once news of the strike spread.

The Houthi movement claimed responsibility for the attack, which was carried out by missile, though Saudi officials have not yet issued any confirmation or denial of the incident.

On the global oil supply front, three sources familiar with negotiations reported that OPEC+ members are likely to keep their December production targets unchanged at their meeting scheduled for Sunday. Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman are currently producing at levels below their assigned targets.

However, several factors are tempering the rally: market expectations of rising U.S. oil inventories, as well as the possibility of declining Russian crude exports through Baltic and Black Sea ports next month—a development traders attribute to Russian refineries' shift toward increasing diesel production following an agreement reached with Washington this month.