Oil prices remained above $100 a barrel on Wednesday, as investors worried about possible disruptions to global oil supplies from the Middle East conflict and a storm moving toward major US oil-producing areas.
Brent crude futures rose 35 cents, or 0.35%, to $100.93 a barrel by 0800 GMT on Wednesday. US West Texas Intermediate (WTI) crude also gained, rising 15 cents, or 0.17%, to $89.59 a barrel, according to Reuters. Saudi Arabia’s East-West pipeline has increased its oil flows to 5.8 million barrels per day, Saudi Energy Minister Prince Abdulaziz bin Salman said on Tuesday. Around 12 million barrels per day of crude oil and 2 million barrels per day of refined oil products left the region on tankers over the past seven to 10 days, Vitol’s head said, Reuters reported. The offshore areas in the storm’s expected path produce about 15% of US crude oil and 5% of US natural gas. The US has around 18.2 million barrels per day of total refining capacity, Reuters reported.
The airports in Jazan and Najran were targeted as fighting between Saudi Arabia and Yemen’s Iran-backed Houthis became more intense, Reuters reported. The main concern in the oil market is whether the recent increase in oil supplies from the Middle East can continue, as the region remains affected by military conflict and attacks on ships. At the same time, oil supplies from the region have started recovering, giving the market some relief. More oil has also been shipped out of the Middle East recently. However, traders are not fully convinced that this higher level of supply and exports will last. This means the market is still watching the war and attacks in the region as a major threat to future oil supplies, even though exports have recently increased. US-Iran relations also remain tense, with no clear sign that the two countries are moving closer to repairing their relationship. The oil market is also facing a new supply threat from the United States. This means a major storm could temporarily force some oil and gas production to slow or stop, creating another supply problem for the market. The storm could potentially affect six US refineries.
Because any new disruption to supplies could quickly push prices higher, iNG commodity strategists said the oil market is likely to remain nervous. Because attacks on ships are continuing, according to Reuters, iNG also said Middle East supply risks remain serious, especially. Because they account for about 50% of the country’s total refining capacity, uS refineries in the Gulf states are especially important.
PVM analyst Tamas Varga said investors lack confidence that the recent rise in Middle East oil exports is sustainable, according to Reuters. KCM Trade chief analyst Tim Waterer called the storm an “unwelcome complication” for crude oil, Reuters reported. Waterer said the storm could lead to production and refining disruptions at a time when the oil market is already dealing with several supply-side problems.
The security situation also worsened after two Saudi Arabian airports were hit in attacks on Monday evening, Saudi Arabia’s aviation authority said. US President Donald Trump said on Tuesday that nobody knew who was running Iran during the eight-month US-Israeli war with Iran, Reuters reported.
US weather forecasters said on Tuesday that a storm forming in the Gulf of Mexico was expected to become the first Atlantic hurricane of 2026 within two days. The key reason Brent is staying above $100 is the uncertainty over future supply. Higher Middle East exports are helping supply, but continued attacks, rising tensions and the threat of a US hurricane are keeping traders worried about new disruptions.
Because it could move toward major oil and gas facilities in the US Gulf region, the storm is important for oil markets. Because traders are not sure whether those supplies will remain stable while war risks and the US storm threaten production and refining, for now, Brent remains above $100 a barrel even as supply from the Middle East improves,.
