Storm and Houthi Attacks Drive Oil Prices Higher

Crude oil prices surged on Wednesday as a tropical storm threatened US Gulf energy infrastructure while Yemen's Houthi rebels escalated attacks on Saudi Arabia. Brent futures climbed 0.92% to $101.51 a barrel, and West Texas Intermediate rose 0.92% to $90.25. The gains followed a volatile Tuesday session that nearly saw Brent hit its lowest close since late September.

US forecasters warned that a storm forming in the Gulf of Mexico could become the first Atlantic hurricane of 2026 within two days, potentially disrupting 15% of US crude production and 5% of natural gas output. The storm could also impact six refineries, which account for roughly half of the nation's refining capacity, further straining fuel markets already stressed by wartime supply losses.

The storm's threat emerged as traders reassessed Middle Eastern crude flows. Saudi Energy Minister Prince Abdulaziz bin Salman reported that the East-West Pipeline had reached 5.8 million barrels per day. Vitol, a major commodity trading house, noted that around 12 million barrels per day of crude and 2 million barrels per day of refined products had been exported from the Middle East over the past week, suggesting some easing of price pressure.

However, the security situation remained volatile. Saudi Arabia's airports in Jazan and Najran were targeted in two attacks on Monday, injuring three people. The Saudi-led coalition intercepted a ballistic missile fired by the Houthis. Analysts warned that the combination of attacks and refinery outages would likely keep prices elevated near $100 a barrel without significant de-escalation.