Oil Edges Higher as Threat to Saudi Infrastructure Revives Supply Concerns

(MENAFN- MENAFNEditorial)

Oil prices edged higher on Wednesday as a renewed threat to Saudi Arabia's energy infrastructure revived supply concerns. Escalation concerns also continue to push the market to the upside. Prices nevertheless remained within their recent elevated range, with markets awaiting confirmation of any damage and further clarity on the geopolitical outlook.

The physical market offers additional support. API data showed US crude inventories fell by 2.031 million barrels last week, against expectations for an increase, marking a fourth consecutive weekly draw. Today's EIA report will test whether the drawdown is confirmed. Another decline could add upward pressure, although elevated Gulf crude exports and accelerated IEA emergency stock releases continue to cap gains.

Diplomacy remains the main counterweight, but uncertainty over Washington's approach after the US midterm elections adds to the fragile outlook.

Looking ahead, oil is likely to remain within its range until the scale of any damage and the direction of US policy become clearer. Confirmed disruption at Ras Tanura or renewed escalation could push prices towards the top of the range. Continued mediation and additional stock releases could limit gains, while tangible progress towards reopening Hormuz would place selling pressure on prices.

MENAFN28102026000070015918ID1111878924