Oil rises as US orders diplomats to leave Saudi Arabia amid escalating tensions

Crude benchmarks climbed on Thursday as Houthi attacks in Saudi Arabia intensified and Washington directed some diplomats and their families to depart the country, Business Recorder reported. At 00:34 GMT, Brent was up $1.29, or 1.2%, at $110.11 a barrel, while US West Texas Intermediate added 97 cents, or 1%, to $98.12. The attacks included a drone strike on a Saudi oil field that killed two people.

Wider security concerns also featured in the report, with shipping facing at least 18 attacks over the previous two weeks and LSEG analysts warning of risks to Gulf crude shipments and transfers. Separately, US Energy Information Administration data showed crude inventories declined by 3.06 million barrels to 412.5 million last week, while distillate stocks rose 1.68 million barrels to 104.3 million. The US government also offered to lend up to nearly a third of its emergency heating oil reserve as it sought to contain prices affected by diesel shortages.