Oil gains as US storm and Houthi air strikes threaten supply

Business Recorder reported that oil prices rose on Wednesday as markets weighed a storm heading for US oil-producing regions against Houthi attacks on Saudi Arabia. Brent futures moved up 81 cents (0.8%), reaching $101.39 a barrel by 0635 GMT, while US West Texas Intermediate crude gained 61 cents to $90.05 a barrel.

US forecasters said a storm forming in the Gulf of Mexico could reach hurricane status, the first such Atlantic storm this year, within two days, threatening offshore oil and gas facilities. Offshore output in the storm's path accounts for 15% of US crude and 5% of its natural gas, and six refineries could also be affected. US Gulf states host roughly half of the nation's 18.2 million barrels per day of refining capacity.

Attacks on Saudi Arabia's airports in Jazan and Najran on Monday evening were reported by the kingdom's aviation authority as hostilities with the Houthis escalated. Meanwhile, the East-West pipeline is running at 5.8 million barrels a day, according to the kingdom's energy minister, and ING strategists said Middle East supply risks remain serious.