Global oil prices advanced on Wednesday as traders weighed growing supply risks in the Middle East against expectations of increased Russian diesel exports, highlighting uncertainty across international energy markets.
Brent crude futures rose 0.8%, or 89 cents, to $106.58 per barrel in early trading, while US West Texas Intermediate crude gained 0.9% to $94.94 per barrel.
The increase followed renewed tensions involving Saudi Arabia and Yemen's Houthi movement, raising concerns about the security of regional energy infrastructure and the movement of supplies.
An attack on a Saudi Aramco administrative building in Dhahran added to market uncertainty, although the reported damage was limited.
Traders are also closely monitoring developments around the Strait of Hormuz, a critical shipping route for global oil supplies, amid continued regional security concerns.
However, expectations of additional Russian diesel exports have partly offset fears of a tighter energy market, potentially improving the availability of refined petroleum products.
Market participants are assessing whether additional supplies will be sufficient to ease pressure caused by geopolitical disruptions.
The opposing forces of supply concerns and improving fuel availability are expected to contribute to continued price volatility, with crude markets remaining sensitive to developments in the Middle East and international energy trade.
