KABUL (Pajhwok): Global oil prices have risen amid concerns over potential supply disruptions caused by a storm in the Gulf of Mexico and escalating tensions in the Middle East, with Brent crude trading above $101 per barrel and US crude above $90.
Reuters reported that on Wednesday, the price of Brent crude rose by 93 cents, or 0.92 percent, to $101.51 per barrel.
Meanwhile, the price of US West Texas Intermediate (WTI) crude increased by 82 cents, or 0.92 percent, to $90.25 per barrel.
The report said US weather agencies expected
The report said US weather agencies expected a storm forming in the Gulf of Mexico to develop into the first major hurricane of the Atlantic season within the next two days and affect oil and gas production facilities.
The areas of the Gulf of Mexico along the storm’s path account for around 15 percent of US crude oil production and five percent of natural gas production. The storm could also affect the operations of six oil refineries.
It added that refineries in states along the Gulf of Mexico account for nearly half of the US oil-refining capacity, while the country’s total refining capacity stands at around 18.2 million barrels per day.
Marketl and petrol inventories fell last week
Meanwhile, marketl and petrol inventories fell last week. Reports indicate that US crude oil inventories declined by 2.09 million barrels in the week ending 2 October
At the same time, escalating tensions in the Middle East have also increased concerns over oil supplies.
Saudi Arabia’s ain two attacks on Monday evening. The attacks came as clashes between Saudi Arabia and Yemen’s Houthi movement intensified
Saudi Arabia’s Energy Minister said oil shipments through
Meanwhile, Saudi Arabia’s Energy Minister said oil shipments through the country’s East-West pipeline had reached 5.8 million barrels per day. The head of Vitol also said that around 12 million barrels of crude oil and two million barrels of petroleum products had been transported by sea from the Middle East each day over the past seven to 10 days.
Reuters, citing market experts, reported that continued attacks and possible disruptions to refinery operations could keep oil prices at elevated levels. If tensions do not ease, prices could remain around $100 per barrel.
Source: pajhwok.com
