Oil prices moved higher on Wednesday as traders weighed fresh supply risks from a storm approaching the US Gulf against signs that more Middle Eastern crude is reaching the market.
Brent crude futures gained $1.05, or 1.04 percent, to $101.63 a barrel by 0400 GMT. US West Texas Intermediate (WTI) crude was up 80 cents, or 0.89 percent, at $90.24 a barrel.
The immediate concern is a developing storm in the Gulf of Mexico. US forecasters said on Tuesday that the system was expected to strengthen into the first Atlantic hurricane of 2026 within two days, putting oil and gas facilities in its path at risk.
The affected offshore areas account for around 15 percent of US crude production and 5 percent of natural gas output. The storm could also disrupt operations at as many as six refineries.
That has added another layer of uncertainty to an already unsettled oil market. Refineries in the US Gulf states account for roughly half of the country’s total refining capacity of 18.2 million barrels per day.
“The storm is an unwelcome complication for crude,” said Tim Waterer, chief market analyst at KCM Trade. He said it raised the risk of production and refining disruptions at a time when the market was already dealing with several supply concerns.
US crude inventories also provided some support to prices. Market sources, citing American Petroleum Institute data, said stockpiles fell by 2.09 million barrels in the week ended October 2.
Still, there are signs that oil supplies are recovering.
Saudi Arabia’s East-West pipeline has reached a throughput of 5.8 million barrels per day, Energy Minister Prince Abdulaziz bin Salman said on Tuesday. Vitol’s chief executive also said around 12 million barrels per day of crude and 2 million barrels per day of refined products had left the Middle East by tanker over the previous seven to 10 days.
But the wider security picture remains tense.
Saudi authorities said airports in Jazan and Najran came under attack on Monday evening, as fighting involving Yemen’s Houthis intensified. The attacks came as Saudi-backed Yemeni government forces pushed ahead with an offensive against the Houthis following weeks of rebel gains.
The renewed attacks have kept traders alert to the possibility of further disruptions to oil flows and refining operations in the region.
“Supply risks from the Middle East are still very real amid continued attacks on ships,” ING commodity strategists said, adding that the market was likely to remain sensitive to any new disruption.
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