Brent $115-116, WTI $101-102 Oil prices rose in early Asian trade on Wednesday, as renewed Houthi attacks in Saudi Arabia rekindled concerns about oil supplies in the region, and the oil market awaited some policy decisions. The quotes are triggered by uncertainty surrounding the Fed rate, the electoral agenda in Israel, the threat of a new escalation with Iran and a political scandal in the family in the United States. According to the API, in the week ended Oct. 23, 100,000 barrels of crude oil were removed from the SPR Strategic Petroleum Reserve to replenish commercial reserves, bringing total reserves in the SPR to 282.6 million barrels -- a level that is 431 million barrels below its maximum capacity. Any of these factors could change the mood of traders, but the main risk is still related to the physical supply of oil and fuel. Diesel does not get cheaper, despite attempts to stabilize the market. The high cost of fuel becomes a problem for transportation, industry and inflation. At the same time, the risk of renewed Ukrainian attacks on Russian targets after November 4th. So far, this is a scenario, not an attack schedule. However, new damage to renovating facilities could exacerbate the shortage of petroleum products again. China seeks to increase its production and reduce dependence on imports, although it is premature to talk about a permanent decrease in all oil purchases. OPEC+, meanwhile, tends to maintain existing quotas in December. In the face of geopolitical disturbances, the organization's influence on actual supply appears increasingly limited. The Houthis added a new dose of risk to the market. On October 27, they announced a missile strike on the largest Saudi refinery, Ras Tanora, and a fire at the facility. Saudi authorities have not confirmed the hit, although Bloomberg reported a local fire near the oil terminal.

Brent $115-116, WTI $101-102 Oil prices rose in early Asian trade on Wednesday, as renewed Houthi attacks in Saudi Arabia rekindled concerns about oil supplies in the region, and the oil market awaited some policy decisions. The quotes are triggered by uncertainty surrounding the Fed rate, the electoral agenda in Israel, the threat of a new escalation with Iran and a political scandal in the family in the United States. According to the API, in the week ended Oct. 23, 100,000 barrels of crude oil were removed from the SPR Strategic Petroleum Reserve to replenish commercial reserves, bringing total reserves in the SPR to 282.6 million barrels -- a level that is 431 million barrels below its maximum capacity. Any of these factors could change the mood of traders, but the main risk is still related to the physical supply of oil and fuel. Diesel does not get cheaper, despite attempts to stabilize the market. The high cost of fuel becomes a problem for transportation, industry and inflation. At the same time, the risk of renewed Ukrainian attacks on Russian targets after November 4th. So far, this is a scenario, not an attack schedule. However, new damage to renovating facilities could exacerbate the shortage of petroleum products again. China seeks to increase its production and reduce dependence on imports, although it is premature to talk about a permanent decrease in all oil purchases. OPEC+, meanwhile, tends to maintain existing quotas in December. In the face of geopolitical disturbances, the organization's influence on actual supply appears increasingly limited. The Houthis added a new dose of risk to the market. On October 27, they announced a missile strike on the largest Saudi refinery, Ras Tanora, and a fire at the facility. Saudi authorities have not confirmed the hit, although Bloomberg reported a local fire near the oil terminal.