Global oil prices rise amid supply concerns and market developments

Oil prices climbed on Wednesday as traders assessed supply risks stemming from the Middle East conflict alongside the prospects of increased diesel supplies from Russia. Brent crude futures rose 89 cents, or 0.8%, to $106.58 a barrel by 0030 GMT, while U.S. West Texas Intermediate crude futures gained 80 cents, or 0.9%, to $94.94 a barrel. In the previous session, Brent had declined 0.9%, whereas the U.S. benchmark added 0.4%, according to Reuters data. Hiroyuki Kikukawa, general manager of research at Nissan Securities Investment, noted that supply concerns driven by regional conflict are pushing prices upward. He added that rising Russian diesel exports could ease market tightness, potentially limiting sharp price swings in either direction, and projected that WTI prices would trade between $90 and $100 a barrel. Meanwhile, an official source at the Saudi Ministry of Energy stated that an administrative building belonging to Saudi Aramco in Dhahran, in the Eastern Province, was targeted on Tuesday evening, resulting in a limited fire. The source clarified that competent authorities handled the incident and took necessary measures, confirming zero injuries or fatalities. Furthermore, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman on Tuesday, emphasized that the Houthi militia will face the consequences of its crimes and repeated aggressive attacks against Saudi airports, Makkah, Madinah, pilgrims, and civilian and economic facilities. Separately, the Organization of the Petroleum Exporting Countries (OPEC) stated on Tuesday that the OPEC+ alliance recorded a sharp surge in production during September, driven by higher output from Saudi Arabia despite ongoing disruptions to shipments through the Strait of Hormuz caused by the Iran conflict. Additionally, two senior Iranian officials told Reuters that Iran is employing new methods to target vessels passing through the Strait of Hormuz in an effort to keep oil prices high and influence the U.S. midterm elections.