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Oil prices rose on Wednesday, as traders assessed supply risks stemming from the escalating conflict between the Yemeni Houthi group and Saudi Arabia, alongside prospects for increased Russian diesel exports.
Brent crude futures rose 0.8% to $106.58 a barrel by 00:30 GMT, while US West Texas Intermediate crude rose 0.9% to $94.94.
Brent had fallen 0.9% on Tuesday, while US crude rose 0.4%.
Hiroyuki Kikukawa, general manager of research at Nissan Securities, said that supply concerns stemming from the conflict between the Houthis and Saudi Arabia are pushing prices higher.
He added that an increase in Russia's diesel exports could ease supply shortages, limiting sharp price volatility, and expects West Texas Intermediate crude to trade between $90 and $100 per barrel.
The Saudi Ministry of Energy said on Wednesday that a Houthi attack targeted an administrative building belonging to Aramco in the city of Dhahran, causing a limited fire.
The Houthis have launched ballistic missiles and drones at Saudi Arabia over the past few days.
In a related context, the Organization of the Petroleum Exporting Countries (OPEC) said on Tuesday that the OPEC+ alliance's production rose sharply in September, driven by increased Saudi production, despite shipping disruptions through the Strait of Hormuz caused by the war linked to Iran.
And Reuters quoted two senior Iranian officials as saying that Tehran is using new methods to target ships passing through the Strait of Hormuz, with the aim of keeping oil prices high and influencing the US midterm elections.
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