Hurricane Francine's expected landfall in Louisiana disrupts oil production in the Gulf of Mexico, pushing oil prices higher despite a recent downward revision in demand forecasts by OPEC.
Crude oil prices moved higher earlier today on anticipation that tropical storm Francine would disrupt oil and gas production in the Gulf of Mexico. News that Exxon was reportedly cutting production rates at its refinery in Baton Rouge, Louisiana, helped prices move higher. Reuters reported on Tuesday, citing unnamed sources, that Exxon planned to slash production at the 522,500-bpd facility to just 20% of capacity ahead of Francine’s landfall.
According to the latest update, Francine has strengthened to a Category 1 hurricane and will make landfall in Louisiana later today. Yet storm activity in the Gulf of Mexico was not the only reason oil prices moved higher, according to some analysts. “Investors adjusted their positions after Tuesday's sharp drop,” Nissan Securities analyst Hiroyuki Kikukawa told Reuters.
Hurricane Francine Gulf Of Mexico Oil Production Exxonmobil Refinery OPEC Demand Forecast Supply Disruption Investors
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