Business

Hurricane season hits oil and gas in US Gulf


Analysts Rystad Energy noted that: “The third consecutive hurricane that hit the Gulf of Mexico this season, has caused crews to evacuate oil producing facilities again and shut production.”


The barometer grade, West Texas Intermediate, has tumbled below $40 per barrel due to pandemic-weakened demand and, lately, by worldwide production levels suggested by some analysts to be exceeding targeted cuts by Opec +.


On the most recent Hurricane Sally Rystad said: “Oil prices can only benefit from the US supply relief, with as much as 1 million bpd of production affected.


Even if the weather keeps production shut for a couple of days, the sheer volume of its size is enough for the market to breath a bit, despite its concern for the oil demand recovery.


Unlike previous hurricanes this season, Sally will likely not bring too bitter surprises when crews return, as due to its size it is less likely to cause permanent damage to the infrastructure.”


The Cameron LNG facility, one the top US gas exporting terminals, along the Calcasieu Ship Channel leading up to Lake Charles was still offline.






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