Press Enter to search · ESC to close

Macro

Hurricane Isaias Shuts In 1.46M bpd of Gulf of Mexico Oil Production

Hurricane Isaias has shut in nearly three-quarters of oil production along the U.S. Gulf Coast, with producers suspending about 1.46 million barrels per day as of 12 p.m. ET Friday and evacuating workers from 129 platforms. The storm is pushing up crude prices in the region, while chartering a Very Large Crude Carrier to move U.S. crude to Asia now costs about $79 million, eroding the economics of U.S. crude exports.

Original source

AI take

The shut-ins matter less for the lost barrels than for what they reveal about the export machine: with a VLCC charter priced at roughly $79 million, the arbitrage that normally pulls U.S. crude to Asia narrows sharply just as Gulf supply is disrupted. That combination hits Gulf Coast producers and Asian refiners who lean on U.S. barrels, and it hands pricing leverage to competing suppliers into that market. Whether the storm's disruption proves brief and whether the elevated freight economics persist once platforms restart is the open question.

Generated by AI for reference only.

Share

Related News

TREE NEWS share card
Long-press image above → Save to Photos / Share
Pitch us Feedback