Oil Rises Above $100 as Supply Risks Grow
Oil prices rose on Wednesday as traders assessed potential supply disruptions from a storm moving toward U.S. oil-producing regions and attacks by Yemen’s Iran-backed Houthis on Saudi Arabia.
Brent futures rose 93 cents, or 0.92%, to $101.51 a barrel, while U.S. West Texas Intermediate crude gained 82 cents, also 0.92%, to $90.25 a barrel.
The move came despite a recovery in Middle Eastern crude exports, highlighting how traders remain focused on the possibility of new disruptions to energy supplies.
Gulf of Mexico storm adds supply risk
U.S. forecasters said a storm forming in the Gulf of Mexico would likely become the first Atlantic hurricane of 2026 within two days and could affect oil and gas production facilities.
The offshore areas in the storm’s path account for around 15% of U.S. crude oil production and 5% of natural gas production.
The weather system creates an additional risk for the energy market because a strengthening storm moving through key oil-producing areas could disrupt production and refining operations.
Middle East exports continue to recover
At the same time, Middle Eastern oil exports have increased. Tankers carrying around 12 million barrels per day of crude oil and 2 million barrels per day of refined products have left the region over the previous seven to 10 days, according to Vitol CEO Russell Hardy.
The higher export volumes could help ease concerns about physical supply shortages.
However, geopolitical disruptions still threaten the market. Yemen’s Iran-backed Houthis targeted Saudi airports in Jazan and Najran in two attacks on Monday evening as hostilities between Saudi Arabia and the Houthis escalated.
The attacks occurred while Saudi-backed Yemeni government forces continued a major offensive against the Houthis.
Oil remains near the $100 level
Analysts said attacks and refinery outages could keep refined-product margins elevated and allow scarcity concerns to feed into crude prices.
With Brent trading above $100 a barrel, oil traders remain focused on whether Middle Eastern exports can continue at current levels and whether the latest geopolitical and weather risks develop into actual supply disruptions.
