Brent crude oil prices climbed above $115 per barrel on Wednesday as renewed tensions in the Middle East raised concerns about potential disruptions to global petroleum supplies following a reported missile attack on Saudi Arabia’s largest refinery.
Brent crude oil, the international benchmark for Nigerian crude oil, advanced by $1.59 or 1.4% increase to $115.47 per barrel during early trading, while US West Texas Intermediate (WTI) crude gained $1.43 or 1.4% to $101.33 per barrel.
The recovery followed Tuesday’s decline of nearly $2 per barrel, when diplomatic efforts to ease regional hostilities temporarily reduced concerns about supply disruptions.
Market sentiment shifted after Yemen’s Iran-aligned Houthi movement claimed responsibility for a missile strike targeting Saudi Arabia’s Ras Tanura refinery, a major petroleum processing facility with a capacity of approximately 550,000 barrels per day.
However, Saudi Arabian authorities had not independently confirmed the reported attack, leaving uncertainty over the extent of any damage or operational disruption.
The development has renewed concerns about the security of energy infrastructure in the Middle East, particularly as geopolitical tensions involving Iran continue to threaten petroleum production and shipping routes.
Oil traders are increasingly factoring potential supply interruptions into prices, reflecting fears that further attacks could affect crude exports from one of the world’s most important energy-producing regions.
Meanwhile, preliminary figures attributed to the American Petroleum Institute indicated that US crude oil inventories declined by approximately 2.03 million barrels during the week ended October 23.
The reported reduction contrasted with analysts’ expectations of a modest inventory increase of about 15,000 barrels, suggesting tighter short-term supply conditions in the United States.
Investors are awaiting official inventory figures from the US Energy Information Administration for further indications of market demand and supply.
Attention is also turning to the next OPEC+ meeting scheduled for Sunday, when participating producers are expected to maintain their December production targets.
For Nigeria, the increase in international crude prices could improve petroleum export earnings and strengthen government revenue, particularly if domestic production and export volumes remain stable.
However, higher crude prices could also increase the cost of petroleum products, potentially placing additional pressure on transportation expenses, business operating costs and consumer inflation.
The overall impact on Nigeria will depend on crude production performance, domestic refining capacity and prevailing exchange-rate conditions.
Global oil markets are expected to remain sensitive to developments in the Middle East, with further attacks on energy facilities or disruptions to major shipping routes potentially sustaining upward pressure on prices.
Conversely, meaningful diplomatic progress could reduce the geopolitical premium currently supporting crude oil prices.
