Oil rises as investors mull supply threats
USO•Brent rose 1.21% to $101.80 a barrel and U.S. WTI gained 0.51% to $89.90 by 1008 GMT, as Middle East and Ukraine conflicts and a storm approaching U.S. oil-producing regions raised supply concerns. The IEA was set to discuss a proposed release of oil and diesel stocks.
1. Crude prices rise
Brent futures rose $1.22 to $101.80 a barrel and U.S. West Texas Intermediate gained 46 cents to $89.90 by 1008 GMT on Wednesday. PVM analyst Tamas Varga said investors lacked conviction that recent increases in Middle East supply and exports would be sustainable.
2. Supply risks build
Houthi forces attacked Aden international airport, while Ukraine struck two Russian oil facilities and Russia launched attacks across Ukraine, Ukrainian officials said. An approaching storm in the Gulf of Mexico was forecast to become an Atlantic hurricane within two days and was likely to hit oil and gas facilities; areas in its path produce 15% of U.S. crude oil and 5% of its natural gas. The IEA was due to discuss a proposed release of oil and diesel stocks, while European diesel futures traded about $77 a barrel above Brent, up 13% on the day.
