Brent crude climbs above $101 on Houthi attacks and hurricane threat

Brent crude oil prices surged above $101 per barrel on Wednesday, driven by dual concerns over potential supply disruptions. The first threat comes from the Houthis, who attacked airports in Jazan and Najran, Saudi Arabia, on Monday. The second risk stems from a developing hurricane in the Gulf of Mexico, which could impact key US oil and gas production regions within two days.

At 10:02 am on Wednesday, December Brent oil futures were trading at $101.58, up 0.99%, while November WTI (West Texas Intermediate) futures rose to $90.22, up 0.87%. In India, October crude oil futures on the Multi Commodity Exchange (MCX) opened at ₹8698, up 0.81% from the previous close, and November futures were at ₹8628, up 0.82%. The US National Hurricane Center warned that the storm could become the first Atlantic hurricane of 2026 and disrupt 15% of US crude oil and 5% of natural gas production in the Gulf.

Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, reassured markets that oil supply had been increasing, with the East-West pipeline reaching 5.8 million barrels per day. However, analysts at ING Think noted lingering supply risks in the Persian Gulf, citing continued attacks on ships. They observed a tug-of-war between improving supply and persistent threats, suggesting that prices would remain volatile until risks are addressed.

Other commodities also saw movement on Wednesday. October natural gas futures on MCX rose 0.63% to ₹303.10, while October jeera contracts on NCDEX climbed 1.28% to ₹24120. In contrast, October castorseed futures fell 0.25% to ₹7863.