Oil prices surge over 2% after attack on Saudi oil field raises supply fears

ISTANBUL -- Oil prices rose more than 2 percent on Thursday after a drone attack on Saudi Aramco's Shaybah oil field heightened concerns over further disruptions to energy supplies.

International benchmark Brent crude traded at USD111.40 per barrel, up 2.4 percent as of 0600GMT, while US benchmark West Texas Intermediate (WTI) rose 2.22 percent to USD99.30 per barrel.

The attack, which killed two people, renewed concerns about the security of energy infrastructure in the Middle East, helping oil prices recover from earlier losses.

The US also ordered some personnel and family members to leave its diplomatic missions in Saudi Arabia, adding to concerns over regional tensions.

Meanwhile, large-scale Ukrainian drone attacks targeting Russian oil infrastructure this week further clouded the supply outlook.

The attacks came as Moscow sought to expand diesel exports under an agreement between US President Donald Trump and Russian President Vladimir Putin.

However, increasing crude shipments from the Middle East could limit further price gains, with export flows approaching prewar levels.

Saudi Arabia's crude exports rose 7.9 percent in August to their highest level since March, while Russia was expected to deliver its first diesel shipment to the US on Thursday.