Crude oil futures closed higher Tuesday (Sept. 27) after news that Hurricane Ian is approaching the Gulf of Mexico. Several energy companies have ordered their employees to evacuate their rigs.
- WTI crude futures were up $1.79, or 2.3%, at $78.50 a barrel.
- BRENT crude futures were up $2.21, or 2.6%, at $86.27 a barrel.
BP and Chevron, two of the world’s largest energy companies, have announced the closure of their oil platforms in the Gulf of Mexico to escape the effects of Hurricane Ian.
BP evacuated personnel from the Na Kika platform, which has a capacity of 130,000 barrels per day, and the Thunder Horse platform, which has a capacity of 250,000 barrels per day.
Meanwhile, Chevron evacuated personnel from the Petronius and Blind Faith platforms and halted production on those two platforms. Petronius and Blind Faith produce 105,000 barrels of oil and 90 million cubic feet of gas per day.
According to the Bureau of Safety and Environmental Enforcement (BSEE), as of Tuesday, September 27, about 11% of oil production and about 8.56% of natural gas production in the Gulf of Mexico was shut in preparation for the impact of Hurricane Ian.
Investors are waiting for the OPEC and OPEC+ meeting on oil production policy on October 5 and expect the meeting to result in a production cut to boost oil prices.
Investors are also waiting for crude oil inventories reported today by the EIA, while analysts at S&P Global are forecasting a 400,000 barrel increase in U.S. crude oil inventories for the week ending September 23.
The Spot Market is Open
Wednesday, September 28, 2022