Commodities

Oil Rises as EIA Reports 1.9 Million-Barrel Crude Draw and Houthis Claim Missile Strike on Saudi Refinery

Oil gained Wednesday after the EIA reported an unexpected 1.9 million-barrel fall in U.S. crude stocks and Houthi militants claimed an attack on Saudi Arabia's Ras Tanura refinery.

Oct 28, 2026 - 12:23

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Oil prices rose on Wednesday, October 28, 2026, reversing much of the previous session's decline, after U.S. government data showed an unexpected drop in crude inventories and Yemen's Houthi militants claimed a missile attack on a major Saudi Arabian refinery.

Brent crude futures were trading at $115.66 a barrel, up $1.78, at 11 a.m. ET, while U.S. West Texas Intermediate futures were up $2.48 at $102.38, Reuters reported, adding that futures held their gains after the weekly inventory report. In later morning trading, WTI was up 2.8% at $102.72 and Brent was up about 1.6% at $115.67, according to CNBC. The prices are intraday and will change before settlement.

EIA: crude and distillate stocks fall

Crude inventories fell by 1.9 million barrels to 410.6 million barrels in the week ended October 23, the Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 15,000-barrel rise. OilPrice.com reported that commercial stockpiles are now 4% below the five-year average for this time of year, and that the American Petroleum Institute had reported a 2.031 million-barrel draw a day earlier.

Other figures from the report, as reported by Reuters:

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 624,000 barrels, and Gulf Coast inventories fell to their lowest level since December 2024.
Gasoline stocks rose by 3.9 million barrels to 209.2 million barrels, compared with expectations for a 0.9 million-barrel draw. Midwest gasoline stockpiles are at record lows.
Distillate stockpiles, which include diesel and heating oil, fell by 1.5 million barrels to 102.8 million barrels, versus expectations for a 0.9 million-barrel drop. OilPrice.com said distillate inventories are 10% below the five-year average.
Net U.S. crude imports fell by 796,000 barrels per day, while exports rose by 1.4 million bpd to 4.85 million bpd.
Refinery crude runs fell by 123,000 bpd, and refinery utilization fell 0.6 percentage point to 92.8%.
Total product supplied, a measure of demand, fell by 1.022 million bpd to 20.21 million bpd. Distillate demand rose by 475,000 bpd to 4.21 million bpd, and gasoline demand fell by 622,000 bpd to 8.358 million bpd.

Over the past four weeks, total products supplied averaged 20.8 million barrels per day, up 0.2% from the same period a year earlier, OilPrice.com reported.

Analysts question export figures

"Energy stockpiles fell more than expected as exports took supplies away from the US. The falling distillate inventories imply diesel inventories remain well below seasonal norms, giving little hope for price relief in the near term. SPR draws have also slowed dramatically, which suggests we're running out of cushion," said David Russell, global head of market strategy at TradeStation, according to Reuters.

Ship-tracking firm Kpler said the EIA's export number was higher than its own data. "EIA appears to have significantly overestimated crude exports; observed loadings were about 1 million bpd lower than EIA reported, bringing other elements of the balance into question," said Matt Smith, Kpler's lead oil analyst. He added that gasoline inventories built as implied demand pulled back, while distillate inventories drew as implied demand rose.

Middle East supply concerns

Iran-allied Houthi militants said on Tuesday they had attacked Saudi Arabia's Ras Tanura refinery with a ballistic missile, CNBC reported. Kitco News said Saudi authorities had not immediately confirmed the strike or the extent of any damage, and described Ras Tanura as a major processing and export complex with approximately 550,000 barrels per day of refining capacity.

CNBC also cited a Wall Street Journal report that the U.S. has told several Gulf Arab countries to be ready for a short but intense military campaign after the midterm elections, and reported that President Donald Trump said on Tuesday the war with Iran would end on his terms and that Tehran must be prevented from acquiring nuclear weapons.

On Tuesday, crude prices declined nearly $2 a barrel after diplomatic discussions in Tehran involving representatives of Saudi Arabia, Turkey and Pakistan, according to Kitco News, which noted that the talks have not produced a confirmed settlement between Washington and Tehran.

Higher oil prices also lifted Treasury yields on Wednesday, with the 10-year yield up more than 3 basis points at about 5.024%, CNBC reported, ahead of the Federal Reserve's policy decision at 2 p.m. ET.