Oil and gas exploration sites in the Gulf of Mexico and oil refineries in Louisiana have begun shutting down in anticipation of Hurricane Ida, expected to strike the country at any time now. According to the latest forecasts from the National Hurricane Center, Hurricane Ida is projected to make landfall near New Orleans late Sunday or early Monday, according to Bloomberg.
Oil platforms producing approximately 1.65 million barrels daily, or 91% of the region's crude oil output, and 85% of gas production, were closed as of yesterday, Saturday, according to a U.S. government agency. Additionally, oil refineries along the Mississippi River, estimated to produce about 1.38 million barrels daily of fuels, were also shut down or had their production reduced.
Oil prices rose by 2% on Friday, achieving the largest weekly gain in over a year, as energy companies began halting U.S. production in the Gulf of Mexico ahead of the major hurricane named "Ida," which is anticipated to strike early next week.
Brent crude futures climbed $1.63, or 2.3%, to settle at $72.70 per barrel, while West Texas Intermediate (WTI) crude increased by $1.32, or 2%, to settle at $68.74. This marks the highest closing for Brent since August 2 and for WTI since August 12. On a weekly basis, Brent rose over 11% and WTI rose more than 10%, marking the largest percentage gains for both since June 2020.
