Oil futures climbed Wednesday as Middle East geopolitical tensions overshadowed improving supply levels.
Brent crude for December delivery rose 0.93% to $101.52 a barrel. West Texas Intermediate for November advanced 0.81% to $90.16 per barrel.
Saudi Arabia's East-West Pipeline had restored flow to 5.8 million barrels as of Tuesday morning, according to Saudi Energy Minister Prince Abdulaziz bin Salman. The recovery reflected a rebound in regional crude shipments.
Yet traders grew concerned about fresh disruption risks. Saudi Arabia's aviation authority said Tuesday that airports in Jazan and Najran were targeted in two attacks by Yemen's Iran-backed Houthis. Iran has also stepped up strikes on tankers transiting the Strait of Hormuz, a critical chokepoint for global oil exports.
Naeem Aslam, chief investment officer of Zaye Capital Markets, said oil remains "caught between improving physical supply and persistent geopolitical risk."
Samer Hasn, senior market analyst at XS.com, noted that the Houthis retain the capacity to strike oil facilities hundreds of kilometers from Yemen's border. "These risks could worsen if the Houthis feel the need to apply more pressure as a result of losing more territory," Hasn said.
The price action reflected traders weighing two opposing forces. Supply recovery offered downward pressure on crude. Heightened attack activity and shipping threats in the Strait of Hormuz pushed prices higher. No major disruption to crude flows has materialized so far, but the threat remained elevated enough to support current price levels.