Oil Price Rises Above $101 on Fresh Supply Concerns

Global oil prices rose above $100 a barrel on Wednesday as a strengthening storm in the US Gulf of Mexico raised concerns about disruptions to oil and gas production, while renewed tensions in the Middle East added to supply worries.

Brent crude futures rose 93 cents, or 0.92%, to $101.51 a barrel, while US West Texas Intermediate (WTI) crude gained 82 cents, or 0.92%, to $90.25.

A storm developing in the Gulf of Mexico was forecast to become the first Atlantic hurricane of 2026 within two days. The system is expected to move toward the US Gulf Coast, where it could disrupt offshore oil and gas production and refinery operations.

Offshore areas in the storm’s projected path account for about 15% of US crude oil production and 5% of natural gas production. Up to six refineries could also be affected, while refineries in the US Gulf states account for roughly half of the country’s total refining capacity of 18.2 million barrels per day.

US crude inventories also declined by 2.09 million barrels in the week ended October 2, while gasoline stocks fell and distillate inventories increased slightly, according to industry data cited in market reports.

At the same time, crude supplies from the Middle East have been recovering. Saudi Arabia’s East-West pipeline was transporting about 5.8 million barrels of oil per day, while around 12 million barrels of crude and 2 million barrels of refined products had been shipped from the region daily over the previous seven to 10 days.

However, geopolitical risks remain elevated. Airports in Saudi Arabia’s southern cities of Jazan and Najran were targeted in attacks on Monday as fighting between Saudi-backed Yemeni government forces and Iran-aligned Houthi forces intensified.

The combination of weather-related risks in the United States and continuing tensions in the Middle East has kept oil prices around the $100-a-barrel level despite improving crude flows from the region.