Oil prices rise as storms and Houthi attacks threaten supply
by@Reuters
Summary
Oil prices increased on October 7, 2026, as a storm in the Gulf of Mexico, set to become the first Atlantic hurricane of the year, threatens US oil production, compounded by attacks from Yemen's Iran-backed Houthis on Saudi Arabia. Brent futures rose by 93 cents to $101.51 per barrel, while US West Texas Intermediate crude increased by 82 cents to $90.25. The storm is expected to impact offshore areas that produce 15% of US crude oil and 5% of the nation's natural gas, creating potential disruptions at six refineries that account for approximately 50% of the US refining capacity. This comes amid escalating hostilities between Saudi Arabia and the Houthis, with recent attacks on Saudi airports prompting increased Saudi airstrikes in Yemen.
Analysis
Helen Clark: Helen Clark is a Reuters reporter who contributed to the coverage of oil market developments and regional events. Tim Waterer: Tim Waterer is the chief analyst at KCM Trade. He commented on the storm as an added supply risk for crude oil amid existing market pressures. Saudi Arabia: Saudi Arabia is a major Middle Eastern kingdom and key oil producer. The country faced Houthi attacks on its airports amid broader regional hostilities and reported increased crude flows from its East-West pipeline. Lincoln Feast: Lincoln Feast is a Reuters editor who handled the final review of the oil prices and supply story. Mukesh Sahdev: Mukesh Sahdev is the chief oil analyst at X Analysts in Sydney. He noted that attacks and refinery outages are likely to sustain elevated price levels near $100 without de-escalation. Yemen's Houthis: Yemen's Houthis are an Iran-backed rebel group controlling parts of Yemen and engaged in ongoing conflict with Saudi Arabia. In this news, they conducted attacks on Saudi airports in Jazan and Najran, escalating hostilities and contributing to supply concerns in oil markets. Prince Abdulaziz bin Salman: Prince Abdulaziz bin Salman is Saudi Arabia's Energy Minister. He stated that supply had been rising as the East-West pipeline reached higher throughput levels. Geopolitics: Hostilities between Saudi Arabia and Yemen's Iran-backed Houthis have escalated with recent attacks on Saudi airports and increased Saudi airstrikes in Yemen. Energy Supply: A developing storm in the Gulf of Mexico is projected to become the first Atlantic hurricane of 2026 and threaten US oil and gas production facilities.
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macropolitics