Oil Prices Climb on Gulf Storm and Middle East Tensions
Global oil prices surged on Wednesday due to dual concerns over potential supply disruptions. A storm in the Gulf of Mexico is expected to develop into the first major hurricane of the Atlantic season within two days, threatening oil and gas production facilities. The affected areas account for 15% of US crude oil production and 5% of natural gas production, with six refineries also in the storm’s path.
Brent crude climbed 0.92% to $101.51 per barrel, while US West Texas Intermediate (WTI) crude rose 0.92% to $90.25 per barrel. Additionally, US crude oil inventories fell by 2.09 million barrels in the week ending October 2, adding to supply worries.
Tensions in the Middle East further fueled market anxiety. Saudi Arabia reported attacks on Jazan and Najran airports, escalating clashes with Yemen’s Houthi movement. The Saudi Energy Minister noted that oil shipments through the East-West pipeline reached 5.8 million barrels per day, while Vitol’s head stated that around 12 million barrels of crude oil and two million barrels of petroleum products were transported daily by sea from the Middle East.
Market experts warned that continued attacks and potential refinery disruptions could sustain elevated oil prices, possibly keeping them around $100 per barrel if tensions persist.