Oil prices rise after reported attack on Saudi oil field

Oil prices rose after a reported attack on Saudi Aramco’s Shaybah field, while recovering crude exports tempered the supply picture.

West Texas Intermediate’s December contract gained 0.8% to $97.91 a barrel in early Singapore trading, following a Wednesday session with a $4 trading range. Brent traded above $110 after settling almost unchanged at $108.82, putting its subsequent advance in contrast with the earlier session.

The report of the drone attack said two people were killed but production at Shaybah continued without interruption. It also said Washington had directed certain embassy employees and relatives to leave Saudi Arabia, adding a diplomatic dimension to the reported security deterioration.

Crude recovery complicates supply fears

Brent’s increase for the year approached 80%, with the price advance occurring during a US-Iran war that the report described as disrupting Persian Gulf energy movements. The more recent recovery in crude shipments offers a counterweight to that disruption, although it does not establish that transportation conditions have normalized.

Estimates by banks and oil traders place crude shipments near their levels before the war. The report attributed some of the recovery to tankers disabling tracking equipment to reduce their visibility as exports through the Strait of Hormuz increased.

Those estimates concern crude, not the full range of petroleum supplies. Refined-fuel shipments remain restricted, meaning an improvement in oil exports does not necessarily imply equivalent relief for consumers buying diesel or other finished products.

Diesel remains the tighter market

The report identified diesel as a particularly constrained fuel and said Ukrainian attacks on Russian refining facilities had added to the pressure. It also described governments releasing reserves to ease shortages, without specifying the countries or quantities involved.

US inventory figures showed a different direction for crude and distillates. The Energy Information Administration reported a crude draw exceeding 3 million barrels, alongside a separate release of approximately 300,000 barrels from the Strategic Petroleum Reserve; distillate holdings increased by nearly 2 million barrels.

The distillate increase provided a counterpoint to the reported pressure on diesel and heating oil supplies. However, the inventory figures alone do not establish whether the broader shortage is easing, particularly while refined-product exports remain constrained.

Saudi operations and policy responses

President Donald Trump is pursuing lower energy costs before the approaching midterm elections, according to the report. It described Russia-linked tariff exemptions, a diesel arrangement with Moscow and sales of tankers under sanctions, but did not establish their implementation schedules or volumes.

If Shaybah continues operating and crude exports sustain their recovery, the reported attack would leave Saudi Aramco’s field output intact while preserving more supply for refiners. Under that scenario, continued crude availability could limit additional global energy-cost pressure, although diesel constraints would remain a separate issue.

If further attacks instead interrupt production or shipping, Saudi Aramco could face operational disruption and refiners could encounter less reliable deliveries. That scenario could transmit higher fuel costs through transport and industry; the central uncertainties are whether Shaybah remains unaffected, whether the export recovery persists and whether additional crude translates into more available refined fuel.