Brent crude climbs as storm and Saudi attacks heighten supply fears

Brent crude futures climbed to $101.51 per barrel on October 7, marking a 0.92% increase, as markets reacted to dual threats: a storm in the Gulf of Mexico and attacks on Saudi Arabian airports. The storm, potentially becoming the first Atlantic hurricane of 2026 within 48 hours, could disrupt up to 15% of US crude oil production and 5% of natural gas output. Six refineries along the Gulf Coast, which contribute significantly to the nation’s refining capacity, are also at risk.

Meanwhile, Saudi Arabia reported attacks on Jizan and Najran airports, escalating tensions with Yemen’s Iran-backed Houthis. Despite the conflict, oil supplies from the Middle East have been increasing, with Saudi Arabia’s East-West Pipeline operating at 5.8 million barrels per day. Vitol’s head noted that recent shipments from the region included about 12 million barrels of crude oil and 2 million barrels of petroleum products daily.

US crude oil and gasoline inventories declined last week, while distillate stocks rose slightly, according to the American Petroleum Institute. Analyst Tim Waterer of KCM Trade highlighted the storm’s potential to exacerbate existing supply challenges in the market.