Oil futures got a lift Tuesday as Hurricane Sally neared landfall, forcing the shutdown of more than a quarter of offshore Gulf of Mexico crude production and a number of refineries.
“The current weather system can potentially shut down as much as 1 million barrels of oil per day, mainly in the Mississippi Canyon area,” according to a report from Rystad Energy Tuesday. As opposed to the previous evacuation tied to Hurricane Laura in late August, “we only expect this situation to last for a couple of days before redeployment and restart begins.”
The report said the current estimate for the total outage associated with Sally is between three million and six million barrels of oil over approximately 11 days.
Source: MarketWatch