Global oil prices rose on Wednesday as traders assessed the potential impact of a developing storm in the Gulf of Mexico alongside renewed attacks involving Yemen’s Iran-backed Houthis and Saudi Arabia, keeping concerns about disruptions to energy supplies firmly in focus. Newscard
Brent crude futures increased by about 93 cents, or 0.92 per cent, to $101.51 a barrel by 0022 GMT, while US West Texas Intermediate (WTI) crude gained 82 cents, also about 0.92 per cent, to $90.25.
The rise came despite signs that crude shipments from the Middle East were recovering, highlighting the market’s sensitivity to geopolitical and weather-related risks.
The developing storm in the Gulf of Mexico has become a major concern for energy traders because of the concentration of oil and gas infrastructure in the region.
US forecasters said the system was expected to strengthen into the first Atlantic hurricane of 2026 within two days, potentially affecting offshore production and refining operations.
Offshore areas in the projected path of the storm account for approximately 15 per cent of US crude oil production and 5 per cent of natural gas output.
The storm could also affect six refineries, while refineries located in the US Gulf states represent roughly half of the country’s total refining capacity.
The possibility of temporary shutdowns has therefore added another layer of uncertainty to an already sensitive global oil market.
Even before any actual disruption occurs, traders typically respond to the possibility of reduced production or refining capacity by pricing in a higher risk premium.
KCM Trade chief analyst Tim Waterer described the storm as an unwelcome complication for the crude market, particularly at a time when supply concerns are already being driven by geopolitical tensions.
The latest increase in oil prices also reflects continuing instability in the Middle East. Yemen’s Iran-backed Houthis have intensified attacks against Saudi Arabia, with Saudi authorities reporting strikes targeting airports in Jazan and Najran. Corrections Policy
The attacks have added to concerns about the security of oil-producing and transportation infrastructure in the region.
Although the latest developments have not resulted in a broad interruption of Middle Eastern crude exports, investors remain alert to the possibility that further escalation could affect production, pipelines, shipping routes or insurance costs.
At the same time, the Middle East has been sending substantial volumes of crude and refined petroleum products to international markets.
Around 12 million barrels per day of crude and about 2 million barrels per day of refined products were reportedly being shipped from the region during the previous seven to 10 days.
Saudi Arabia has also reported improved flows through its East-West Pipeline, with the country’s Energy Minister Prince Abdulaziz bin Salman saying the pipeline had reached 5.8 million barrels per day.
These stronger supply flows have helped prevent a sharper tightening of the global market.
However, traders remain concerned that renewed attacks or further damage to energy infrastructure could quickly reverse those gains.
US inventory data has also provided some support for prices. Market sources citing American Petroleum Institute figures said US crude inventories fell by 2.09 million barrels in the week ended October 2, while gasoline stocks also declined. Editorial Ethics & Independence
Falling inventories can strengthen prices by suggesting that available supplies may be tightening.
The combination of these factors has kept Brent crude around the $100-a-barrel level, despite evidence that Middle Eastern exports are recovering.
For oil-importing countries, sustained crude prices above $100 could create additional economic pressures.
Higher international oil prices can increase the cost of importing petroleum products, transportation and electricity generation, potentially feeding into inflation and putting pressure on household and business costs.
Countries such as Ghana could therefore remain sensitive to developments in the global oil market because changes in crude prices can influence domestic fuel pricing, transport costs and the broader cost of doing business.
Analysts expect the market to remain highly sensitive to developments in both the weather and the Middle East. Editorial Standards
A significant disruption to US Gulf production or a further escalation of regional hostilities could push prices higher, while improved exports and reduced geopolitical tensions could ease some of the pressure.
For now, traders are closely watching the storm’s movement, Middle Eastern shipping activity and further developments involving Saudi Arabia and the Houthis.
The competing forces of recovering supply and persistent disruption risks are likely to keep oil markets volatile in the days ahead.