Hurricane Isaias disrupts U.S. oil production in Gulf of Mexico, threatens refineries
The hurricane could tighten a fuel market that is already facing big disruptions from the wars in Eastern Europe and the Middle East.
TL;DR
- Hurricane Isaias is impacting U.S. crude oil production in the Gulf of Mexico.
- About 1.3 million barrels per day (63%) of Gulf production has been shut in.
- The storm may affect about 2.4% of U.S. refining capacity in Mississippi and Alabama.
- Global fuel markets are already tight due to wars in Eastern Europe and the Middle East.
- Diesel supplies are at their lowest levels since 1982.
- Refineries are operating at 95% capacity, leaving little room for increased production.
- Disruptions could delay tanker traffic for both crude oil delivery and fuel exports.
- Florida may experience delays in receiving gasoline, jet fuel, and diesel.