Investing.com - Melius Research points to escalating conflicts in the Gulf region as a driver behind rising oil prices, citing the extended closure of a major Saudi Arabian facility.

The Jizan plant has been shut down for six weeks, exposing vulnerabilities in Middle Eastern energy infrastructure. Melius Research states that ongoing security threats are extending critical maintenance periods beyond the duration of historical isolated incidents at facilities such as Abqaiq or Ras Tanura.

The Jizan facility operates a 400,000-barrel-per-day petroleum refinery alongside a power plant that supplies electricity to the local grid. The dual-purpose nature of the complex increases its strategic importance to regional energy supply.

Melius Research sees the shutdown adding pressure to an already constrained international oil market. The firm notes that U.S. fuel stockpiles remain depleted while Brent crude prices have risen to approximately $98 per barrel.

The research firm attributes the current price environment to the combination of reduced refining capacity from the Jizan closure and existing supply constraints in global energy markets.