Oil prices rise as storms and air strikes threaten supply

Oil prices surged on Wednesday as market participants considered potential supply disruptions from storms and Houthi attacks on Saudi Arabia. Brent futures climbed 93 cents, or 0.92%, to $101.51 a barrel, while US West Texas Intermediate (WTI) crude increased 82 cents, or 0.92%, to $90.25. Forecasts warned that a storm developing in the Gulf of Mexico, expected to become the first Atlantic hurricane of 2026 within two days, threatened to hit oil and gas production facilities.

The storm could disrupt the 15% of US crude oil and 5% of natural gas produced in the Gulf's offshore areas. Analysts noted the storm as an "unwelcome complication" for crude, citing possible production and refining disruptions. US crude oil and gasoline inventories declined last week, while distillate stocks rose slightly, according to the American Petroleum Institute.

Crude stocks dropped by 2.09 million barrels in the week ended October 2. Despite rising supply in the Middle East, particularly from Saudi Arabia, attacks on Saudi Arabian airports and the escalation of hostilities with Yemen's Houthis could maintain scarcity and keep prices near the $100 level.