%Oil and NaturalGas producers along the U.S. Gulf Coast are scaling back their operations as Hurricane Helene approaches the region.
The hurricane is expected to bring potentially devastating winds and storm surges to the U.S. Gulf Coast when it makes landfall on Sept. 26.
Helene is forecast to sweep across the eastern Gulf of Mexico before stretching into Florida, according to the U.S. National Hurricane Centre.
Classified as a Category 4 storm, Hurricane Helene brings with it winds of up to 156 miles per hour.
Residents in the storm’s path have been ordered to evacuate and businesses have been told to close or scale back their operations, including oil refineries and natural gas terminals.
About 30% of crude oil production and 17% of natural gas output along the U.S. Gulf of Mexico has been shutdown in response.
Crude oil production in the U.S. Gulf of Mexico accounts for 1.8 million barrels per day, or about 15% of America’s total output.
Analysts say the current disruption could lead to a near-term rise in the price of West Texas Intermediate (WTI) crude oil, which is the U.S. standard.
WTI crude oil is currently trading at $69.52 U.S. per barrel. Brent crude oil, the international standard, is trading at $72.22 U.S. a barrel.
COMTEX_458196440/2797/2024-09-26T11:11:42