Brent holds above $100 as supply concerns deepen

Traders Union
All News
Commodities
Brent holds above $100

Highlights

Brent rose 1.28%, while WTI gained 0.91%.
Gulf storm risks threaten 15% of U.S. crude output.
Middle East and Russian disruptions keep fuel supply tight.

December Brent futures climbed 1.28% to $101.87 a barrel, while November WTI advanced 0.91% to $90.25, according to the latest market readings. Concerns over the approaching U.S. storm joined continuing disruptions linked to conflicts in the Middle East and Ukraine, Reuters reports.

Gulf storm adds to supply risks

Forecasters expect the developing Gulf of Mexico storm to become the first Atlantic hurricane of 2026 and potentially affect U.S. oil and gas infrastructure. Offshore areas in its projected path account for about 15% of U.S. crude production and 5% of domestic natural gas output.

The weather threat comes as traders question whether the recent recovery in Middle Eastern exports can be sustained. Regional flows have improved significantly from the disruption earlier in the conflict, but shipping and energy infrastructure remain exposed to renewed attacks.

Fighting also intensified in Yemen, where Houthi forces attacked Aden international airport with ballistic missiles and explosive drones, according to the country's transport ministry. Separately, strikes on Russian energy facilities have continued to affect expectations for refined-product availability.

Fuel markets remain under pressure

The effect of supply disruptions is particularly visible in refined fuels. European benchmark diesel futures traded at a premium of roughly $77 a barrel over Brent on Wednesday, after rising 13% during the session.

Reduced Middle Eastern refining activity and attacks affecting Russian energy infrastructure have tightened fuel availability even as crude exports from the Gulf recover.

The International Energy Agency also held an informal meeting Wednesday to discuss a proposed release of oil and diesel reserves. Emergency stocks can add barrels to the market and limit immediate shortages, but they do not restore damaged refining capacity or remove the risks affecting production and shipping.

Supply recovery remains fragile

The latest move in crude reflects a market receiving more Middle Eastern oil while facing several potential interruptions at once. A hurricane affecting the U.S. Gulf could temporarily reduce offshore production or refining, while continuing conflicts threaten crude and fuel supplies elsewhere.

That combination leaves little room for a fresh disruption to major energy infrastructure. The recovery in exports has helped rebuild supply, but weather risks and attacks on energy facilities mean the improvement remains vulnerable to reversal.

As we previously reported, Yemeni forces push Houthis back from key Red Sea shipping route.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.