Oil prices moved slightly higher on Wednesday as investors assessed improving crude exports from the Gulf alongside continuing risks to supplies from the Middle East and potential weather-related disruption in the United States.
At 08:08 GMT, benchmark Brent crude futures were up 0.4% at $100.96 a barrel, while US West Texas Intermediate futures were broadly unchanged at $89.47 a barrel.
Oil prices initially fell towards $97 a barrel in the previous session after data indicated that Gulf exporters exceeded pre-war export levels for approximately half of September.
The figures followed a pledge by Group of Seven countries to release emergency energy reserves and the resumption of operations at Saudi Arabia’s East-West pipeline, providing indications of increased Middle Eastern supply availability.
Brent subsequently returned above $100 as markets assessed reports of increased Iranian attacks on tankers passing through the Strait of Hormuz. Deutsche Bank analysts cited the developments as a factor behind renewed caution in the oil market.
Iranian state media also reported an explosion near Qeshm island, close to the Strait of Hormuz, adding to concerns over tanker traffic through the waterway.
Yemen Fighting Adds to Shipping Risks
Fighting has also intensified between Saudi-aligned coalition forces in Yemen and Iran-backed Houthi forces.
Government forces and Saudi Arabia have increased air strikes aimed at retaking Houthi-controlled territory, including areas close to the Bab el-Mandeb Strait, an important shipping route for oil exports from the region.
ING analysts said, “There is a clear tug-of-war at the moment between improving supply from the region and lingering threats to supply. Clearly, it’s looking as though the only way to see prices trade sustainably lower is for lingering risks to be addressed.”
They added: “For now, the market is likely to remain nervous to any potential supply disruptions.”
Storm Threatens US Oil-Producing Regions
A developing storm approaching US oil-producing areas has added another potential source of supply disruption.
Forecasters said the storm could become the first Atlantic hurricane of 2026 within two days and could move towards regions responsible for approximately 15% of US crude oil production and 5% of US natural gas production, according to Reuters.
US oil inventories also declined by 2.09 million barrels in the week ended October 2, according to data released by the American Petroleum Institute on Tuesday.
Official US inventory figures are scheduled for release later on Wednesday.