The attack by the Houthis in Yemen on the oil refinery in Saudi Arabia and the decrease in US stocks pushed prices up.
The barrel price of Brent oil rose to $115.81 due to the Houthis' attack on the Ras Tanura Oil Refinery in Saudi Arabia and the unexpected decrease in US oil stocks.
AI-generated summary
As an Iranian-backed group, the Houthis carry out attacks targeting the energy infrastructure in Saudi Arabia. Diplomatic talks in the region continue to seek peace.
The January term barrel price of Brent oil, which rose to $111.91 yesterday, finished the day at $109.41. The barrel price of Brent oil increased to $115.81 as of 14.30 today.
At the same minutes, the December term barrel price of West Texas Intermediate (WTI) crude oil was 101.71 dollars.
The rise in oil prices is driven by concerns that the Iran-backed Houthis in Yemen's resumption of attacks against Saudi Arabia may disrupt diplomatic efforts to reduce tensions in the Middle East and negatively affect oil supplies in the region.
At the meeting held between the delegations of Türkiye, Saudi Arabia, Pakistan and Iran in Tehran, the capital of Iran, on Monday, regional security, Israel's activities in the region and developments in Palestine and Lebanon were discussed.
In the final declaration published after the meeting, it was stated that it was agreed to continue the negotiations in order to strengthen the cooperation between the 4 countries, including ensuring peace and security in the region.
These diplomatic initiatives supported the downward movement of oil prices by alleviating market players' concerns about supply disruptions in the region. However, the Iranian-backed Houthis in Yemen announced yesterday that they targeted the Ras Tanura Oil Refinery in the Sharqiyya region in eastern Saudi Arabia, again increasing concerns about the security of the energy infrastructure in the region and turning the prices upwards.
Houthis' Military Spokesperson Yahya Seri, in his statement on the social media platform of the US-based company X, stated that they targeted the Ras Tanura Oil Refinery with a ballistic missile and that the attack was accurate.
Seri stated that as a result of the attack, large-scale fires broke out in the region.
This development supports the rise in prices by strengthening concerns that conflicts in the Middle East may spread to oil production and refining facilities.
On the other hand, the American Petroleum Institute (API) estimated that US commercial crude oil stocks decreased by approximately 2 million 31 thousand barrels last week. Market expectation was that there would be an 800 thousand barrel increase in stocks.
The decrease in stocks, contrary to market expectations, contributed to the rise in oil prices by supporting expectations that demand in the USA was strong. The US Energy Information Administration (EIA) is expected to release official oil stock data today.
AI outlook — possibilities, not facts
Release of EIA official oil stock data.
Very likely · Within hours
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