Yemen's Houthis claim attacks on Saudi Ras Tanura refinery, aviation and military targets

Oil facilities, airports and a military position across Saudi Arabia were targeted in six missile and drone attacks, Yemen's Iran-aligned Houthis said on Thursday, according to Xinhua News Agency.

According to Houthi military spokesman Yahya Sarea, three ballistic missile attacks were directed at the Ras Tanura refinery and Saudi Aramco facilities in Abqaiq, both located in Saudi Arabia's Eastern Province, as well as the Rabigh refinery on the country's Red Sea coast.

In two other operations, missiles targeted King Khalid International Airport in Riyadh, the Saudi capital, while a drone targeted King Fahd International Airport in Dammam in the Eastern Province, the source said.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

The attacks were a response to recent Saudi strikes on areas held by the Houthis in Yemen, the Houthi military spokesman said.

How is the market responding?

West Texas Intermediate (WTI) is trading at $101.80 at the time of writing, a gain of 0.54% for the day.

WTI Oil: Key Questions Answered

What defines WTI Oil?

Among the crude oil varieties traded internationally, WTI, short for West Texas Intermediate, is one of the three major types alongside Brent and Dubai Crude. Its relatively low gravity and sulphur content earn it the descriptions “light” and “sweet”, respectively. Regarded as a high-quality oil, WTI is easy to refine. The crude originates in the United States and is distributed through the Cushing hub, known as “The Pipeline Crossroads of the World”. As an oil market benchmark, WTI features frequently in media price reports.

What determines WTI Oil prices?

Supply and demand underpin WTI Oil prices, as they do for all assets. Stronger global growth can lift demand, whereas weaker growth can have the reverse effect. Supply disruptions arising from political instability, wars and sanctions can also affect prices. Another major influence is the production decisions taken by OPEC, a group of leading oil-producing countries. Since crude is traded predominantly in US Dollars, the US Dollar's value also shapes WTI Crude Oil prices: a weaker currency can make oil more affordable, while a stronger one can have the opposite effect.

Why do inventory figures affect WTI Oil prices?

WTI Oil prices respond to the weekly oil inventory reports issued by the American Petroleum Institute (API) and the Energy Information Agency (EIA), as stock movements reflect shifts in supply and demand. A decline in inventories can signal stronger demand and lift oil prices. Conversely, a build-up can point to greater supply and weigh on prices. Every Tuesday brings the API report, followed by the EIA release the next day. The two sets of figures tend to be similar, with their results within 1% of each other 75% of the time. As the EIA is a government agency, its data is regarded as more reliable.

Why do OPEC decisions matter for WTI Oil prices?

At meetings held twice a year, the 12 oil-producing nations in OPEC (Organization of the Petroleum Exporting Countries) jointly set production quotas for member countries. These decisions frequently affect WTI Oil prices. A reduction in quotas can constrain supply and drive oil prices higher; an increase in OPEC production has the reverse effect. The broader OPEC+ grouping brings in ten additional non-OPEC members, with Russia the most notable among them.