Oil prices rise amid US storm and Middle East supply concerns
Oil prices moved higher on Wednesday as traders assessed possible disruptions to US production from an approaching storm and growing tensions in the Middle East.
Brent crude futures increased by $1.05, or 1.04%, to $101.63 a barrel by 0400 GMT. US West Texas Intermediate (WTI) crude also gained 80 cents, or 0.89%, to reach $90.24 a barrel.
A storm developing in the Gulf of Mexico is expected to strengthen into the first Atlantic hurricane of 2026 within two days, according to US weather forecasters. The system could affect oil and gas operations in the region.
Offshore production areas along the storm’s expected path account for around 15% of US crude output and about 5% of the country’s natural gas production.
The potential weather disruption comes as oil markets are already monitoring supply risks linked to the Middle East. Analysts said any interruption to production or refining could add further pressure to prices.
The storm could also affect as many as six refineries. Refineries located along the US Gulf Coast represent roughly half of the country’s total refining capacity of about 18.2 million barrels per day.
US crude inventories also declined last week. Data cited from the American Petroleum Institute showed that crude stocks fell by around 2.09 million barrels in the week ending October 2.
Meanwhile, concerns over Middle East supplies remain despite signs that oil flows are recovering. Saudi Arabia’s East-West pipeline has reached a capacity of about 5.8 million barrels per day, according to the kingdom’s energy minister.
Vitol’s chief executive also said around 12 million barrels per day of crude and 2 million barrels per day of refined petroleum products had been transported from the Middle East by tanker shipments over the previous seven to 10 days.
However, tensions remain high after Saudi Arabia’s airports in Jazan and Najran were targeted in attacks. The incidents came amid an escalation in fighting between Saudi-backed Yemeni forces and the Iran-backed Houthi movement.
Analysts said continued attacks and possible refinery disruptions could keep refined fuel markets tight and support crude oil prices.
Oil prices are likely to remain around the $100-a-barrel level unless there is a significant easing of tensions in the region, according to market analysis.
At the same time, relations between the United States and Iran remain strained following months of conflict, adding another layer of uncertainty for global energy markets.
