The U.S. energy industry has halted about a third of Gulf of Mexico oil production and expects more disruptions, as the industry braces for the first hurricane of the year.
The approaching storm, which was still forming over the Gulf Wednesday, was expected to head into the Louisiana coast by Saturday, dumping a large amount of rain.by 4.5%, per barrel, on concerns the storm would disrupt oil production and threaten flooding around refineries in the area. Gasoline futures were also higher by about 4%, reaching $2 per gallon.
The National Hurricane Center is predicting that the storm will develop over the Gulf of Mexico and hit the coast of Louisiana by Saturday. The storm, to be named Barry, would be the first hurricane of the season. The U.S. Coast Guard anticipates issuing potential water way restrictions on the Mississippi River within the next two days. That could limit the movement of tankers to and from refining areas.
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