Oil prices rise as storms and air strikes threaten supply
USO•Brent rose 93 cents, or 0.92%, to $101.51 a barrel, while U.S. WTI gained 82 cents, or 0.92%, to $90.25. A Gulf of Mexico storm could disrupt oil and gas production, while attacks on Saudi Arabia added to supply concerns.
1. Storm threatens production
A storm forming in the Gulf of Mexico was forecast to become the first Atlantic hurricane of 2026 within two days and would likely hit oil and gas facilities. The offshore areas in its path produce 15% of U.S. crude oil and 5% of the country’s natural gas, and the storm could affect six refineries. Gulf-state refineries account for about half of U.S. capacity of 18.2 million barrels per day.
2. Supply and regional tensions
U.S. crude inventories fell by 2.09 million barrels in the week ended October 2, while gasoline inventories also declined and distillate stocks rose marginally. Supply from the Middle East had increased: Saudi Arabia’s East-West pipeline reached 5.8 million barrels a day, and about 12 million barrels per day of crude and 2 million barrels per day of refined products left the region by tanker in the prior 7 to 10 days. Saudi airports in Jazan and Najran were targeted in attacks as hostilities with Yemen’s Iran-backed Houthis escalated.
