Hurricane Isaias Shuts In 1.3 Million Bpd of Gulf Oil as 466,000 Bpd of Refining Faces Risk
Updated
Updated · CNBC · Oct 9
Hurricane Isaias Shuts In 1.3 Million Bpd of Gulf Oil as 466,000 Bpd of Refining Faces Risk
3 articles · Updated · CNBC · Oct 9
Summary
1.3 million barrels per day of Gulf crude output—about 63% of the region’s total—was shut in Thursday as Hurricane Isaias approached Mississippi, Alabama and the Florida Panhandle.
120-mph Category 3 winds are expected to bring landfall Friday night or early Saturday, threatening Chevron’s Pascagoula refinery and Vertex Energy’s Saraland plant, which together account for 466,000 bpd, or 2.4% of U.S. refining capacity.
Chevron said Pascagoula remained operational Thursday, but analysts warned power loss or flooding could force shutdowns, with restarts taking one to two weeks if facilities avoid damage.
95% Gulf Coast refinery utilization leaves little spare capacity, while U.S. diesel supplies are already at their lowest seasonal level since EIA records began in 1982.
Tanker delays are also expected to slow crude deliveries and fuel shipments, with Florida likely to see slower arrivals of gasoline, jet fuel and diesel.