Oil prices rose as investors weighed potential supply disruptions from a storm approaching the United States’ oil-producing regions and continuing attacks in the Middle East against expectations of increased crude supplies.
Brent crude futures gained $1.05, or 1.04 per cent, to $101.63 a barrel by 0400 GMT, while US West Texas Intermediate (WTI) crude rose 80 cents, or 0.89 per cent, 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, with the potential to disrupt oil and gas production facilities in its path.
Offshore areas in the Gulf targeted by the storm account for about 15 per cent of US crude oil production and five per cent of the country’s natural gas output.
KCM Trade chief analyst Tim Waterer described the storm as an “unwelcome complication” for the crude market, warning that it could trigger production and refining disruptions at a time when supply concerns were already weighing on the market.
The storm could also affect six refineries, with refineries in the US Gulf states accounting for about half of the country’s total refining capacity of 18.2 million barrels per day, according to Reuters.
Meanwhile, US crude inventories declined last week, according to market sources citing data from the American Petroleum Institute.
Crude stocks fell by 2.09 million barrels in the week ended October 2, adding to concerns over near-term supply availability.
Market participants are also monitoring developments in the Middle East, where attacks on shipping continue to raise concerns about disruptions to crude supplies and transportation.
“For now, the market is likely to remain nervous to any potential supply disruptions,” ING commodity strategists said, adding that supply risks from the Middle East remained significant amid continued attacks on ships.
The combination of the approaching storm, falling US crude inventories and persistent geopolitical tensions has increased uncertainty in the oil market, even as traders assess expectations of higher Middle East crude supplies.
