Oil prices rise as storms and air strikes threaten supply

Business Recorder reported that Brent futures climbed 93 cents, or 0.92 per cent, to $101.51 a barrel by 0022 GMT on Wednesday, while US West Texas Intermediate gained 82 cents to $90.25. Traders were weighing a storm building over the Gulf of Mexico, which US forecasters said could become the first Atlantic hurricane of 2026 within two days. The offshore areas in its path account for 15 per cent of US crude output and 5 per cent of the country's natural gas, and the storm could affect six refineries.

Supply concerns also came from the Middle East. Saudi Arabia's aviation authority said two attacks on Monday evening targeted airports in Jazan and Najran, as hostilities with Yemen's Iran-backed Houthis escalated. Saudi Energy Minister Prince Abdulaziz bin Salman said on Tuesday that the East-West pipeline had reached 5.8 million barrels a day.

Industry data from the American Petroleum Institute, cited by market sources, showed US crude inventories shrinking by 2.09 million barrels through the week to October 2, while distillates edged higher. KCM Trade chief analyst Tim Waterer described the storm as an unwelcome complication, given that the market already faced supply-side pressures. Trump also said on Tuesday that no one knew who was in charge in Iran during the eight-month conflict between the US, Israel and Iran.