Oil Gains as U.S. Gulf Output and Refineries Halted Before Storm
- More than 80% of offshore production already closed down
- Motiva, Valero among refiners winding down operations
Source: CIRA/RAMMB
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Oil rallied and gasoline surged to a five-month high as energy companies suspended offshore operations and refiners shuttered Gulf Coast plants with Tropical Storm Laura expected to strengthen into a hurricane before making landfall later this week.
Around 82% of oil production in the Gulf of Mexico was halted by around midday Monday, with refinery closures from companies including Motiva Enterprises LLC and Valero Energy Corp. potentially shutting in more than 1 million barrels a day of capacity. Gasoline futures rose to their strongest level since before the pandemic on concern over possible fuel shortages. Meanwhile, oil futures rose 0.7% in New York and 1.8% in London.