Oil prices rise by more than $1 on Wednesday

Oil prices rose by more than $1 on Wednesday as escalating Middle East tensions heightened concerns over supply disruptions, while falling US crude inventories supported the market.

Brent crude futures gained $1.61, or 1.5 per cent, to $110.40 per barrel by 0630 GMT, while US West Texas Intermediate (WTI) crude rose $1.45, or 1.5 per cent, to $99.27 per barrel.

Prices fluctuated amid uncertainty over diplomatic efforts involving Iran, with Tehran reportedly telling Pakistan that it would not negotiate with Washington until its demands were met. Meanwhile, maritime security risks increased, with at least 18 vessel attacks recorded over the past two weeks, according to shiptracker Kpler.

The Houthis also claimed responsibility for attacks on a Saudi Aramco site in Yanbu, the Shaybah oilfield and airports in Riyadh and Abha.

Meanwhile, US crude stocks fell by 4.9 million barrels in the week ended October 16, according to market sources citing data from the American Petroleum Institute (API). US Energy Department officials also said Washington was working with international refiners to boost fuel production amid rising diesel prices.

Attribution: Reuters