Oil prices remained above $100 a barrel on Wednesday, as investors worried about possible disruptions to global oil supplies from the Middle East conflict and a storm moving toward major US oil-producing areas.
Brent crude futures rose 35 cents, or 0.35%, to $100.93 a barrel by 0800 GMT on Wednesday. US West Texas Intermediate (WTI) crude also gained, rising 15 cents, or 0.17%, to $89.59 a barrel, according to Reuters.
Oil supply risks remain high
The main concern in the oil market is whether the recent increase in oil supplies from the Middle East can continue, as the region remains affected by military conflict and attacks on ships.
ING commodity strategists said the oil market is likely to remain nervous because any new disruption to supplies could quickly push prices higher. ING also said Middle East supply risks remain serious, especially because attacks on ships are continuing, according to Reuters.
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Saudi Arabia boosts oil supply
At the same time, oil supplies from the region have started recovering, giving the market some relief. Saudi Arabia’s East-West pipeline has increased its oil flows to 5.8 million barrels per day, Saudi Energy Minister Prince Abdulaziz bin Salman said on Tuesday.
More oil has also been shipped out of the Middle East recently. Around 12 million barrels per day of crude oil and 2 million barrels per day of refined oil products left the region on tankers over the past seven to 10 days, Vitol’s head said, Reuters reported.
War keeps oil prices under pressure
However, traders are not fully convinced that this higher level of supply and exports will last. PVM analyst Tamas Varga said investors lack confidence that the recent rise in Middle East oil exports is sustainable, according to Reuters. This means the market is still watching the war and attacks in the region as a major threat to future oil supplies, even though exports have recently increased.
The security situation also worsened after two Saudi Arabian airports were hit in attacks on Monday evening, Saudi Arabia’s aviation authority said. The airports in Jazan and Najran were targeted as fighting between Saudi Arabia and Yemen’s Iran-backed Houthis became more intense, Reuters reported.
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US-Iran tensions add to oil risks
US-Iran relations also remain tense, with no clear sign that the two countries are moving closer to repairing their relationship. US President Donald Trump said on Tuesday that nobody knew who was running Iran during the eight-month US-Israeli war with Iran, Reuters reported. The oil market is also facing a new supply threat from the United States.
Gulf storm threatens US oil
US weather forecasters said on Tuesday that a storm forming in the Gulf of Mexico was expected to become the first Atlantic hurricane of 2026 within two days. The storm is important for oil markets because it could move toward major oil and gas facilities in the US Gulf region.
The offshore areas in the storm’s expected path produce about 15% of US crude oil and 5% of US natural gas. This means a major storm could temporarily force some oil and gas production to slow or stop, creating another supply problem for the market.
US refineries face storm threat
KCM Trade chief analyst Tim Waterer called the storm an “unwelcome complication” for crude oil, Reuters reported. Waterer said the storm could lead to production and refining disruptions at a time when the oil market is already dealing with several supply-side problems.
The storm could potentially affect six US refineries. US refineries in the Gulf states are especially important because they account for about 50% of the country’s total refining capacity. The US has around 18.2 million barrels per day of total refining capacity, Reuters reported.
The key reason Brent is staying above $100 is the uncertainty over future supply. Higher Middle East exports are helping supply, but continued attacks, rising tensions and the threat of a US hurricane are keeping traders worried about new disruptions.
For now, Brent remains above $100 a barrel even as supply from the Middle East improves, because traders are not sure whether those supplies will remain stable while war risks and the US storm threaten production and refining.