Oil prices rise on Wednesday

Oil prices rose on Wednesday as traders weighed potential supply disruptions from a storm approaching US oil-producing areas against recovering Middle East crude supplies.

Brent crude futures rose $1.05, or 1.04 per cent, to $101.63 a barrel by 0400 GMT, while US West Texas Intermediate (WTI) crude gained 80 cents, or 0.89 per cent, to $90.24.

A storm forming in the Gulf of Mexico is expected to become the first Atlantic hurricane of 2026 within two days and could disrupt oil and gas production. Offshore areas in its path account for 15 per cent of US crude oil and 5 per cent of natural gas production.

The storm could also affect six refineries, with US Gulf states accounting for about half of the country’s 18.2 million barrels per day of refining capacity.

US crude inventories fell by 2.09 million barrels in the week ended October 2, according to American Petroleum Institute data cited by market sources.

Meanwhile, Middle East supply has been recovering, with Saudi Arabia’s East-West pipeline reaching 5.8 million barrels per day. Around 12 million barrels per day of crude and 2 million barrels per day of refined products have left the region on tankers over the past seven to 10 days.

However, attacks by Yemen’s Iran-backed Houthis on Saudi airports in Jazan and Najran have heightened concerns over regional supply risks.

Attribution: Reuters