Oil prices rose on October 7 due to the threat of disruptions to production and refining in the United States as a result of the storm, as well as attacks by Yemen’s Houthis on Saudi Arabia. Reuters reports this, UNN writes.
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Brent futures rose by $1.05, or 1.04%, to $101.63 per barrel. U.S. WTI rose by 80 cents, or 0.89%, to $90.24.
According to a forecast by U.S. meteorologists on October 6, the storm in the Gulf of Mexico could turn into a hurricane within two days and strike oil and gas facilities. Offshore areas along its path account for 15% of U.S. oil production.
Six oil refineries were also under threat. Overall, states along the Gulf of Mexico account for about half of the country’s refining capacity.
Another factor was the decline in U.S. oil inventories. According to the American Petroleum Institute, cited by the publication’s sources, they fell by 2.09 million barrels in the week ending October 2.
At the same time, increased supplies from the Middle East are restraining the price rise. However, the risks of further disruptions remain due to Houthi attacks on Saudi Arabia and strikes on vessels in the region.