Oil markets edged higher on Wednesday, with Brent futures climbing 93 cents to $101.51 a barrel and U.S. West Texas Intermediate up 82 cents to $90.25. Traders cited two fresh supply risks: a tropical storm moving toward the Gulf of Mexico’s oil‑producing region and recent attacks by Yemen’s Iran‑backed Houthis on Saudi Arabian airports.
Gulf storm adds pressure to U.S. production
U.S. forecasters expect the system to become the first Atlantic hurricane of 2026 within two days, potentially impacting offshore facilities that supply roughly 15% of U.S. crude and 5% of natural gas. KCM Trade chief analyst Tim Waterer called the storm “an unwelcome complication for crude, raising the prospect of production and refining disruptions at a time when the market already has enough supply‑side headaches.” The disturbance could affect up to six refineries, which together represent about half of the nation’s refining capacity of 18.2 million barrels per day.
Houthi strikes raise Middle‑East supply concerns
Saudi Arabia’s airports in Jazan and Najran were hit on Monday night, according to the Saudi aviation authority, as hostilities between Riyadh and Yemen’s Iran‑backed Houthis intensified. The attacks came amid a Saudi‑backed Yemeni government offensive to retake territory from the rebels, with Riyadh stepping up airstrikes in support.
Vitol’s head noted that roughly 12 million barrels per day of crude and 2 million barrels per day of refined products have been leaving the Middle East on tankers over the past week‑plus, underscoring the region’s pivotal role in global supply.
Market outlook and presidential comment
Analyst Mukesh Sahdev of X Analysts in Sydney warned that “the cracks will likely stay elevated and scarcity will transmit to crude. Prices will stay elevated near a $100 level without any material de‑escalation emerging.”
President Donald Trump weighed in on the broader geopolitical backdrop, stating on Tuesday that “nobody knows who is running Iran during the eight‑month U.S.–Israeli war with Iran. Their leaders are gone, their second group of leaders are gone, and the biggest problem I have is nobody knows who the hell is running the country.” Iran’s foreign ministry rebutted, saying Washington knows exactly who its counterpart is and understands Iran’s decision‑making system.
Inventory data and supply trends
U.S. crude oil and gasoline inventories fell last week, while distillate stocks rose marginally, according to data from the American Petroleum Institute. Crude stocks dropped by 2.09 million barrels in the week ended October 2. Meanwhile, the East‑West pipeline continues to move about 5.8 million barrels per day, as reported by Saudi Energy Minister Prince Abdulaziz bin Salman.
With the storm’s path and Houthi attacks adding uncertainty, market participants will watch closely for any operational disruptions that could push prices higher in the coming days.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
