Oil jumps above $101, Houthi attacks fuel supply concerns

Brent crude futures rose 1.93 per cent to $101.54 a barrel on Wednesday, according to Mettis Global data, as fresh Houthi attacks on Saudi Arabia stoked fears of disruption to Middle Eastern crude shipments. West Texas Intermediate futures climbed $1.47, or 1.66 per cent, to $90.15 a barrel by 09:25 am PST.

Prices rose even though physical supply appeared to be improving. Saudi Energy Minister Prince Abdulaziz bin Salman said flows through the East-West Pipeline had hit 5.8 million barrels by Tuesday morning. Geopolitical worries nonetheless kept sentiment under pressure after Saudi Arabia's aviation body reportedly said Jazan and Najran airports were hit in two Tuesday assaults.

Naeem Aslam, chief investment officer at Zaye Capital Markets, said oil markets are torn between firmer physical supply and ongoing geopolitical threats. This leaves the market weighing two opposing forces at the same time.