Brent crude oil prices reached $101.3 per barrel today, Wednesday, indicating a 0.72 percent increase. This rise is due to concerns over supply disruptions caused by a storm moving towards oil and gas production areas in the Gulf of Mexico. Additionally, Houthi attacks on Saudi Arabia at a time when oil supply from the Middle East has increased have impacted this situation.
Impact of the Storm on Oil and Gas Production
American meteorologists have predicted that the storm forming in the Gulf of Mexico could become the first Atlantic storm of 2026 within two days and has the potential to damage oil and gas production facilities. Offshore areas in the storm's path produce about 15 percent of U.S. crude oil and 5 percent of natural gas.
Tim Water, senior analyst at KMC Trade, stated that this storm is an "unintentional barrier for crude oil and increases the likelihood of production and refining disruptions at a time when the market is already facing supply issues." This storm could affect six refineries, while refineries in the Gulf Coast states account for about 50 percent of the 18.2 million barrels per day refining capacity in the United States.
Increase in Saudi Oil Production
In Saudi Arabia, Prince Abdulaziz bin Salman, the Minister of Energy, announced that the amount of oil pumped through the East-West pipeline has increased to 5.8 million barrels by Tuesday morning. The CEO of Vitol commodity trading company also added that in the past seven to ten days, about 12 million barrels per day of crude oil and 2 million barrels per day of petroleum products have been exported from the Middle East via tankers.
Mockesh Sahdev, senior oil analyst at X-Analytics in Sydney, noted that attacks and refinery shutdowns "are likely to keep refining margins high, and this issue will also affect crude oil. Prices will remain close to the $100 level without any tangible relief."
Meanwhile, West Texas Intermediate crude oil prices in the U.S. also rose by 0.5 percent to $89.8. These fluctuations in oil prices are clearly influenced by weather conditions and geopolitical developments, reflecting the market's sensitivity to these factors.
