Oil gains as US storm and Houthi air strikes threaten supply

Oil prices rose on Wednesday, according to The Express Tribune, as markets weighed a storm moving toward US energy regions and Houthi attacks on Saudi Arabia. Brent futures added $1.05, or 1.04 per cent, reaching $101.63 per barrel by 0400 GMT. West Texas Intermediate gained 80 cents to $90.24 per barrel.

Within two days, US forecasters said on Tuesday, a developing system over the Gulf of Mexico could be classed as 2026's first Atlantic hurricane. Offshore areas in its path account for 15 per cent of US crude output and 5 per cent of national natural gas. Refineries in Gulf states hold about half of the country's 18.2 million barrels per day capacity, and the storm could affect six of them. KCM Trade analyst Tim Waterer called the system an unwelcome complication for crude at a time of existing supply strains.

Flows are improving, with Saudi Arabia's East-West pipeline now carrying 5.8 million barrels a day, according to the kingdom's energy minister on Tuesday. Tankers have carried about 12 million barrels daily of crude and 2 million of refined fuels out of the Middle East, Vitol's chief said, covering the past 7 to 10 days. Two attacks on Monday evening targeted airports in Jazan and Najran, and Riyadh is backing a Yemeni government offensive against the Houthis.