Business · Energy & Commodities · 1 day ago

Hurricane Isaias halts 72% of US Gulf of Mexico oil output

Hurricane Isaias halts 72% of US Gulf of Mexico oil output

Hurricane Isaias, which strengthened to Category 3 as it approached the US Gulf Coast, has disrupted offshore oil production in the Gulf of Mexico.

Producers shut about 1.46 million barrels a day, or 72% of the region’s total output.

Workers were evacuated from 129 platforms, and two drilling rigs moved away from the storm’s path.

BP stopped production and evacuated workers from its Thunder Horse and Na Kika platforms, while removing non-essential staff from three others.

The disruption comes as the war involving Iran has unsettled global oil shipping routes and increased delivery times for cargoes from the Middle East.

That has pushed the cost of shipping US crude to Asia to about $79 million for a large tanker, making exports less economically attractive.

The shutdown could limit the buildup of offshore oil that might otherwise be hard to sell abroad.

Sources

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