Oil prices climb as traders weigh Saudi supply risk, Russian diesel flow

Business Recorder reported that oil prices moved higher on Wednesday as traders balanced supply risk from a clash between Yemen's Houthis and Saudi Arabia against the possibility of more Russian diesel. By 0030 GMT, Brent crude futures had added 89 cents, or 0.8%, to $106.58 a barrel, while US West Texas Intermediate rose 80 cents, or 0.9%, to $94.94.

Saudi Arabia's energy ministry said a Houthi strike on an office block belonging to Saudi Aramco in Dhahran caused a small blaze. Recently the group has used ballistic missiles and drones against the kingdom, framing these attacks as retaliation for Riyadh's backing of Yemen's government troops. The airport in Riyadh has been hit four times, with one Saturday strike killing 13 people. Chief strategist Hiroyuki Kikukawa of Nissan Securities Investment said supply concerns are lifting prices, while expected Russian diesel exports should limit sharp moves.

Russia's government said on Tuesday there was no direct connection between Ukraine peace negotiations and its diesel export arrangement with the US. The comment followed a Reuters report that American representatives had briefed Ukrainian officials on Friday, describing the deal as an attempt to pull Moscow back into negotiations. OPEC said on Tuesday that Saudi Arabia lifted oil output last month even though shipments were disrupted by the US-Iran war.