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

"Supply ​concern stemming from conflict between the Houthis and Saudi Arabia is driving ​prices higher," said chief strategist Hiroyuki Kikukawa at Nissan Securities Investment, ⁠a unit of Nissan Securities.

"However, the expectation that increased Russian diesel exports ​will ease market tightness is likely to limit sharp price movement in either direction," ​Kikukawa said, projecting WTI to trade between $90 to $100 a barrel. The Houthis attacked an administrative building belonging to state-owned oil firm Saudi Aramco (2223.

SE) in the city of Dhahran, causing a limited fire, ​Saudi Arabia's energy ministry said on Wednesday. The group has fired ballistic missiles and ​drones at Saudi Arabia over the past week in retaliation for the kingdom's support of ‌Yemeni ⁠government forces.

Riyadh's international airport has been hit four times, with a strike on Saturday killing 13 people. Last month, Saudi Arabia raised oil production despite disruption to shipments caused by the US-Iran war, leading to a sharp production increase from OPEC+ — the ​Organization of the ​Petroleum Exporting Countries ⁠and partners including as Russia — OPEC said on Tuesday.

Iran is deploying new tactics to target ships in the Strait of Hormuz ​to keep oil prices high and influence US midterm elections, ​two senior ⁠Iranian officials.

In Russia, the government said on Tuesday it did not see any direct link between peace talks with Ukraine and its deal to export diesel to ⁠the US.The ​comment came after Reuters reported that US envoys ​had that the deal was part of an attempt to draw ​Russia back to negotiations for a peace settlement.