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LONDON: Oil prices climbed on Wednesday as markets weighed potential supply disruptions from a storm approaching US oil-producing areas and renewed attacks in the Middle East against signs of increased crude supplies from the region.
Brent crude futures rose $1.05, or 1.04%, to $101.63 a barrel by 0400 GMT, while US West Texas Intermediate (WTI) crude futures gained 80 cents, or 0.89%, to $90.24 a barrel.
US forecasters said on Tuesday that a storm forming in the Gulf of Mexico was expected to become the first Atlantic hurricane of 2026 within two days, potentially disrupting oil and gas production facilities.
Offshore areas in the storm’s projected path account for around 15% of US crude oil production and 5% of the country’s natural gas output.
KCM Trade chief analyst Tim Waterer described the storm as an “unwelcome complication” for crude markets, warning that it could lead to production and refining disruptions at a time when the market was already facing supply-side uncertainty.
The storm could affect as many as six refineries. Refineries located in the US Gulf states account for about half of the country’s total refining capacity of 18.2 million barrels per day (bpd).
US crude inventories also declined last week, according to market sources citing American Petroleum Institute data. Crude stocks fell by 2.09 million barrels in the week ended October 2.
Despite the potential disruptions, oil supplies from the Middle East have continued to recover.
Saudi Arabia’s East-West pipeline reached throughput of 5.8 million barrels per day, Saudi Energy Minister Prince Abdulaziz bin Salman said on Tuesday.
The head of Vitol said around 12 million barrels per day of crude oil and 2 million bpd of refined petroleum products had been shipped out of the Middle East over the previous seven to 10 days.
However, attacks on Saudi targets have added to concerns over regional supply security.
Saudi Arabia’s aviation authority said airports in Jazan and Najran were targeted in two attacks on Monday evening, as hostilities between Saudi Arabia and Yemen’s Iran-backed Houthi movement escalated.
The attacks came as Saudi-backed Yemeni government forces intensified an offensive to reclaim territory from the Houthis following weeks of rebel advances. Riyadh has increased airstrikes in support of the campaign.
Mukesh Sahdev, chief oil analyst at X Analysts in Sydney, said attacks and refinery outages were likely to keep refined-product premiums elevated and could transmit scarcity into the crude market.
He said crude prices could remain near $100 a barrel without a significant reduction in regional tensions.
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Market participants are also monitoring tensions between the United States and Iran, with relations showing little sign of improvement.
US President Donald Trump said on Tuesday that there was uncertainty over who was running Iran during the eight-month US-Israeli war with Iran.
ING commodity strategists said the market was likely to remain sensitive to potential supply disruptions, particularly as risks to Middle East oil supplies remained amid continued attacks on shipping.
With weather-related risks in the US Gulf and geopolitical tensions in the Middle East developing simultaneously, traders remain focused on whether disruptions will materially affect global crude supplies.
[…] Oil Prices Rise as Gulf Storm, Middle East Attacks Raise Supply Concerns […]