Crude oil prices have risen again in the global market. Investors are cautious, considering the possibility of increased diesel supply from Russia, as well as concerns about fuel supply in Saudi Arabia. As a result, oil prices in the international market continue to fluctuate.
Brent crude futures rose 89 cents, or 0.8 percent, to $106.58 a barrel at 12:30 p.m. GMT on Wednesday (October 14), while U.S. West Texas Intermediate (WTI) crude rose 80 cents, or 0.9 percent, to $94.94 a barrel, Al Jazeera reported.
Earlier in the day, Brent crude fell 0.9 percent to $105.69 a barrel at the close of trading on Tuesday. In contrast, WTI rose 0.4 percent to $94.14.
Supply concerns after attacks in Saudi Arabia
Reuters reported that the conflict between Yemen’s Iran-backed Houthi group and Saudi Arabia is threatening oil supplies, while the possibility of increased diesel supplies from Russia is also weighing on the market.
Saudi Arabia’s Energy Ministry said on Wednesday that Houthis had attacked an administrative building of state-owned oil company Saudi Aramco in the eastern city of Dhahran, causing a limited fire.
Market volatility due to supply risks and opportunities
An escalation of the conflict in Saudi Arabia, one of the world’s leading oil producers, could disrupt the supply of crude oil to the international market, potentially putting further upward pressure on oil prices.
On the other hand, increased diesel supplies from Russia could change the balance of supply in the energy market. As a result, investors are looking for a balance between the risk of supply disruption on the one hand and the possibility of increased supply on the other.
According to analysts, the security situation in the Middle East and changes in international energy supplies could play a significant role in determining the trajectory of oil prices in the coming days.