Brent and WTI crude both climbed Wednesday as traders weighed easing Gulf supply against fresh threats in the Middle East and a storm bearing down on U.S. oil regions. A drop in U.S. crude inventories and intensified Yemen fighting added to the uncertainty.
Brent crude futures rose 0.9% to $101.50 a barrel by 08:55 ET. U.S. West Texas Intermediate futures ticked up 0.4% to $89.80 a barrel over the same window.
Gulf supply recovery meets renewed Hormuz risk
In the previous session, oil prices had initially dropped toward $97 a barrel, reflecting data showing Gulf exporters surpassed pre-war levels for roughly half of September. A Group of Seven pledge last week to release emergency energy reserves, along with reopened operations at Saudi Arabia's East-West pipeline, had buoyed hopes for a recovery in Middle East supply.
That fall proved short-lived. Brent climbed back above $100 as caution returned on news of increased Iranian strikes against tankers passing through the Strait of Hormuz, analysts at Deutsche Bank said. Iranian state media also reported a blast heard off Qeshm island near Hormuz, adding to fears over tanker traffic through the waterway, which has been effectively closed since shortly after a joint U.S.-Israeli assault on Iran in late February.
Yemen fighting adds to the tension
Fighting has also intensified between Saudi-aligned coalition forces in Yemen and Iran-backed Houthi militants. Government forces and Riyadh have stepped up air attacks to retake Houthi-controlled territory, including areas near the Bab el-Mandeb Strait, another critical chokepoint for Gulf shipments.
According to ING: "the market is likely to remain nervous to any potential supply disruptions". The bank's analysts described a tug-of-war between improving regional supply and lingering threats, adding that prices are unlikely to trade sustainably lower until those risks ease.
Storm and inventory data compound the picture
A potentially major storm heading toward U.S. oil-producing regions has added to worries over constrained global supply. Forecasters said the storm could become the first Atlantic hurricane of 2026 within two days and may hit areas that produce 15% of U.S. crude and 5% of the country's natural gas, Reuters reported.
Elsewhere, U.S. oil inventories fell 2.09 million barrels in the week to October 2, American Petroleum Institute data showed Tuesday. The API figures usually foreshadow a similar trend in official U.S. inventory data, due later Wednesday.
Source: Investing.com
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