Brent crude climbed above $115 a barrel on Wednesday, October 28, after Yemen's Houthi movement claimed a missile strike on Saudi Arabia's largest oil refinery. The reported attack renewed fears of disruption to Saudi energy production, reversing part of the previous day's decline in oil prices.
Brent futures gained $1.48, or 1.3%, to $115.36 a barrel in early Asian trading, while US West Texas Intermediate rose $1.22 to $101.12. Both benchmarks had fallen by nearly $2 on Tuesday as diplomatic talks in the Middle East briefly eased concerns over regional oil supplies.
The latest threat centres on Ras Tanura, a major refining and export complex on Saudi Arabia's Gulf coast. Houthi military spokesperson Yahya Saree claimed on Tuesday that the group had struck the facility with a ballistic missile and caused a fire. Saudi authorities had not confirmed the attack, and the extent of any damage or disruption to operations remained unclear.
The refinery can process 550,000 barrels of crude oil and condensate daily, according to Saudi Aramco's published refining disclosures. Ras Tanura also forms part of the country's critical oil-export infrastructure, linking refining operations with maritime shipments.
A prolonged interruption could affect Saudi Arabia's ability to process crude and supply petroleum products. For now, however, there is no verified evidence that the reported strike has removed 550,000 barrels a day from global supply. Refining capacity describes what the facility can process, not the volume of production actually lost.
The threat has emerged during a period when Saudi Arabia's alternative export routes are also exposed to conflict. Attacks around the Strait of Hormuz and the Red Sea corridor have complicated efforts to move crude safely to international markets, leaving exporters with fewer dependable shipping options.
The scale of those disruptions is considerable. The US Energy Information Administration estimated that oil shipments through the Strait of Hormuz averaged just 4.9 million barrels a day during the second quarter of 2026, compared with 21.6 million barrels a day in the final quarter of 2025.
Moving oil has also become more expensive. In an October 12 statement, OPEC and its partners warned that shipping and insurance costs had exceeded one-third of the commodity's value in some cases, adding to expenses for producers and importing countries.
For India, which relies heavily on imported crude, sustained prices near $115 increase the cost of energy purchases and can place additional pressure on the trade balance. Refiners must also account for freight and insurance expenses when sourcing oil from affected regions.
The latest price increase reflects the possibility of damage to a major Saudi facility rather than a confirmed loss of refining output. Ras Tanura's operating status, the extent of any physical damage and whether further attacks occur will determine how much of Wednesday's supply concern translates into an actual shortage.
