Muscat:Oil prices have increased as the market evaluates current supply plans amidst climate and geopolitical risks. Brent crude futures rose by 93 cents, or 0.92 percent, reaching $101.51 per barrel. Meanwhile, US West Texas Intermediate crude saw an increase of 82 cents, or 0.92 percent, to $90.25.

According to Oman News Agency, US meteorologists have forecasted that a storm currently forming in the Gulf of Mexico is expected to develop into the Atlantic Ocean's first hurricane of 2026 within the next two days. This storm poses a threat to oil and gas production facilities in the area.

The Gulf of Mexico's offshore areas, which are in the potential path of the storm, are responsible for producing 15 percent of US crude oil and 5 percent of natural gas. Additionally, the storm could impact six refineries, with refineries in the Gulf of Mexico states accounting for roughly 50 percent of the US's production capacity, which totals 18.2 million barrels per day.

Market sources have reported, based on data from the American Petroleum Institute, that US crude oil and gasoline inventories decreased last week, while distillate inventories experienced a slight increase.