Oil prices climbed on Wednesday as the market weighed supply constraints from a storm heading for US oil-producing regions and attacks by Yemen’s Iran-backed Houthis on Saudi Arabia against increased supplies of Middle East crude.
Brent futures rose $1.05, or 1.04%, to $101.63 a barrel by 0400 GMT. US West Texas Intermediate (WTI) crude futures rose 80 cents, or 0.89%, to $90.24 a barrel.
US forecasters said on Tuesday a storm forming in the Gulf of Mexico would become the first Atlantic hurricane of 2026 within two days and would likely hit oil and gas producing facilities.
The offshore areas in the Gulf in the storm’s path produce 15% of US crude oil and 5% of the country’s natural gas.
KCM Trade chief analyst Tim Waterer said the storm was an “unwelcome complication for crude, raising the prospect of production and refining disruptions at a time when the market already has enough supply-side headaches”.
The storm could affect six refineries. Refineries in US Gulf states account for about 50% of the national capacity of 18.2 million barrels per day (bpd).
