Oil prices climb as Brent tops $101 amid Hormuz tensions

Oil prices rose on Wednesday as traders balanced increased flows through the Strait of Hormuz against a rise in Iranian attacks on ships.

Brent crude futures gained 93 cents, or 0.92 percent, to reach $101.51 a barrel, while West Texas Intermediate rose 82 cents, or 0.92 percent, to $90.25.

According to Reuters, Tim Waterer, chief analyst at KCM Trade, said there are concerns about supply disruptions due to a storm heading toward oil and gas production areas in the Gulf of Mexico. He noted the storm presents an “unwelcome complication” for the crude market, given the potential for production and refining outages at a time when the market is already facing several supply-side pressures.

He added, according to the agency, that the storm could also impact six refineries, with Gulf Coast states accounting for about half of the U.S. refining capacity of 18.2 million barrels per day.

Preliminary data from the American Petroleum Institute, cited by market sources, showed crude oil and gasoline inventories fell last week, while distillate stocks rose slightly. Crude inventories dropped by 2.09 million barrels in the week ending October 2.