Hurricane Isaias Disrupts Gulf Oil Output and Threatens Refineries
Hurricane Isaias disrupted US oil output in the Gulf of Mexico. CNBC reported that the storm also threatened refineries.
A report said about 1.3 million barrels per day was shut down. Refineries in Pascagoula, Mississippi and Saraland, Alabama could be at risk.
The two refineries together account for about 2.4% of US refining capacity. Gulf refineries were running near their limit.
That left little room to make up for lost output. National Public Radio said Isaias was headed for the northern Gulf Coast.
That prompted the oil industry to prepare for the storm. Fuel markets were already facing big disruptions.
These came from wars in Eastern Europe and the Middle East. CNBC said the hurricane could make the fuel market even tighter.
MarketWatch said oil markets were already short of fuel. MarketWatch also said the storm would test those markets under pressure.
Key Terms 3
- refineries Plants that turn crude oil into fuel, such as gasoline.
- barrels per day A unit for measuring oil. One barrel holds about 42 gallons.
- refining capacity The total amount of fuel refineries can produce.