Hurricane Oil Losses Reach 30 Million Barrels, Affects Gas Prices – Corridor News

By Bethany Blancley | Center Square

HAccording to the International Energy Agency (II), Hurricane Ida has already caused a loss of 30 million barrels of oil, the first drop in global oil supply in five months.

At the end of August, oil production in the Gulf closed at 1.7 million barrels a day. Supply should continue in October as OPEC + cuts off, cuts off and other producers increase, ”the agency said in a September Oil Market report.

“Unexpected disruptions in August forced a sharp drop in supplies for the first time in five months, leading to a sharp fall in global oil reserves,” he added.

Due to the severity of the storm, coastal shipments and refineries have been slow to resume, forcing large stockpiles of raw materials in major world markets. The biggest impact on supply will be seen in September, with total supply losses estimated at around 30 MB.

The Bureau of Safety and Environmental Protection reported Wednesday that workers still fled 6603% of the 36 production sites in the Gulf of Mexico, or 6.43%. Two flexible devices are missing, or 13.33% of the 15 currently operating in the Gulf.

Initially, Hurricane Ida closed 288 production stations in the Gulf, shutting down 1.74 million barrels per day, or 95.65% of Gulf production.

BSEE estimates that 29.52% of current oil production and 39.40% of gas production in the Gulf of Mexico are closed. Percentages are calculated using daily reports from beach operators.

The number is an improvement on Monday: 44% of US Gulf of Mexico oil production is offline, or 800,000 barrels a day, Lipp oil partners in Houston, Adam Lipp, told St.

With the price of oil rising and the West Texas index rising more than $ 70 per barrel, Lipou said consumers may not see much relief in Pam.

“We can easily see total product losses of more than 25 million barrels,” he added.

In addition to the closed loopholes, many fully or partially refined refineries in Louisiana are still struggling to resume operations, making it difficult to meet the demand for oil and diesel in the market.

“The result is a further decline in net production that supports prices,” Lipou said. “At least two refineries, Ll Norco and Phillips 66 Belle Chess, are expected to be reduced by four weeks each, and the two filters will combine 500,000 barrels per day.

When Louisiana refineries are fully operational, the price of gasoline will fall.

“With global oil reserves declining and global oil demand is recovering, oil prices are likely to fall sharply unless the United States and Iran agree to a nuclear deal,” he said. If OPEC + decides to increase production faster than its current plan, ”Lipo said.

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