Oil Prices Today, October 28, 2026: Brent Above $115 After Saudi Refinery Attack Revives Supply Fears

Mumbai, October 28: Crude oil prices climbed on Wednesday, with Brent futures trading above $115 a barrel, as an attack claimed by Yemen’s Iran-aligned Houthi group on a Saudi Arabian refinery revived concerns over supply disruptions in the Middle East. Persistent geopolitical tensions and uncertainty over the security of energy infrastructure in the world’s largest oil-exporting region kept markets on edge. 

Brent crude futures rose 1.2% to $115.3 a barrel, while US West Texas Intermediate (WTI) crude gained 1.15% to $101.1. The recovery followed a decline of nearly $2 a barrel in the previous session, when diplomatic efforts in the Middle East had briefly eased concerns about potential supply disruptions. The latest developments have brought supply risks back into focus, with traders assessing whether the conflict could disrupt crude production, refining operations and shipments. 

Saudi Refinery Attack Rekindles Supply Concerns 

Both contracts jumped as the Middle East continued to simmer. Source: Oilprice.com 

Yemen’s Iran-aligned Houthi movement said on Tuesday that it had struck Saudi Arabia’s largest oil refinery with a missile, escalating concerns over the security of energy infrastructure in the region. Saudi authorities had not immediately confirmed the reported attack on the facility, which has a processing capacity of 550,000 barrels per day, according to Reuters. 

The incident comes amid continuing hostilities involving Iran and its regional allies, raising the risk of further attacks on energy assets and shipping routes. Saudi Arabia is a key player in global oil markets, and any sustained disruption to its refining or export infrastructure could tighten supplies and push prices higher. 

Oil markets have been particularly sensitive to developments in the Middle East, where escalating tensions can threaten production, transportation and the movement of crude through critical maritime routes. While diplomatic efforts have periodically raised hopes of de-escalation, the latest reported strike underscores the fragility of those expectations. 

US Crude Inventories, OPEC+ Production in Focus 

Supply-side indicators are also on investors’ radar. US crude inventories were expected to have increased by around 15,000 barrels in the week ended October 23, according to a Reuters poll of eight analysts. The anticipated build was relatively modest and did little to offset concerns stemming from geopolitical developments. 

Meanwhile, members of the OPEC+ alliance are expected to maintain their December production targets at a meeting on Sunday, in line with market expectations, Reuters reported, citing three people familiar with the matter. 

Production among most of the seven core OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — remains below their respective output targets. This limits the extent to which headline production quotas necessarily translate into additional barrels reaching the market. 

Russian crude exports from Baltic and Black Sea ports could also decline next month as domestic refiners increase diesel production following a deal with Washington earlier in October, traders told Reuters. Any reduction in export availability could add another variable to the global supply outlook. 

What Rising Crude Oil Prices Mean for India 

For India, which depends heavily on imported crude to meet its energy requirements, oil prices above $115 a barrel pose significant economic risks. A prolonged rally could increase the country’s import bill, put pressure on the rupee and complicate efforts to contain inflation. 

Higher crude prices can also raise transportation and production costs for businesses, squeezing margins in sectors such as aviation, paints, chemicals, logistics and oil marketing. Companies that rely heavily on petroleum-based inputs may face additional cost pressures if elevated prices persist. 

The impact on consumers will depend on how long crude remains at these levels, currency movements, government tax policies and the pricing decisions of oil marketing companies. Sustained increases could also influence inflation expectations and complicate the broader monetary policy outlook. 

Oil Market Outlook 

The immediate direction of crude prices is likely to depend on developments surrounding the Middle East conflict, the extent of any disruption to Saudi energy infrastructure and signals from OPEC+. A confirmed and sustained interruption to supplies could push prices higher, while meaningful progress towards de-escalation may ease some of the geopolitical premium currently embedded in crude. 

For now, the reported refinery attack has renewed market anxiety despite expectations of a modest increase in US inventories. With Brent above $115 a barrel and WTI above $101, traders remain focused on whether geopolitical risks will translate into actual supply losses or whether diplomatic efforts can prevent a further escalation. 

Source

• Oilprice.com