US Gulf Coast faces hurricane threat this week, impacting oil and gas
US forecasters expect a storm in the Gulf of Mexico to become the first Atlantic hurricane of 2026 within two days, potentially affecting 15% of US crude oil and 5% of natural gas production and refineries accounting for 50% of national capacity.
By Sumit Saha and Erwin Seba Oct 6 (Reuters) — US forecasters said on Tuesday a storm forming in the Gulf of Mexico and speeding towards Louisiana and Mississippi would become the first Atlantic hurricane of 2026 within two days. Currently named Tropical Depression Nine, the cyclone would be at tropical storm strength by early Wednesday, the National Hurricane Center said. "The depression is expected to pass to the north of the Yucatan Peninsula on Thursday, and approach the US northern Gulf Coast on Friday," the Hurricane Center said in a statement.
The storm is forecast to pass through offshore areas with oil and gas production facilities and onshore areas with major refineries. Any impact could further tighten energy markets and drive up gasoline and diesel prices already soaring due to the US-Israeli war with Iran. The offshore areas in the Gulf in the storm's path produce 15% of US crude oil and 5% of the country's natural gas. In the forecast landfall area the storm could affect six refineries operated by Shell, Valero Energy, Marathon, PBF Energy, and Chevron.
2 million barrels per day (bpd). net)