Gulf of Mexico storm could impact gas prices in South Florida
Oil producers shut down output in Gulf of Mexico
MIAMI – The Gulf of Mexico refineries near Louisiana and Texas that are in the path of the storm are cutting crude output as forecasters expect the storm to strengthen into a hurricane this weekend.
The refineries in the Gulf play a huge part in the gasoline market producing 17% of the crude oil in the U.S. market. The disruption could potentially boost gas prices for drivers in South Florida.
U.S. oil surged above $60 a barrel on Wednesday. CNN reported the increase comes amid worries that a potential Hurricane Storm Barry could derail crude production in the Gulf of Mexico.
Offshore oil and gas operators in the Gulf have evacuated platforms and rigs and about 32 percent of the oil producing in the Gulf has been stopped, according to the U.S. Bureau of Safety and Environmental Enforcement.
Royal Dutch Shell, Chevron Corp, Exxon Mobil, Anadarko Petroleum Corp., Motiva Enterprises, Marathon Petroleum Corp., Phillips 66 and BH Group Ltd. are preparing for the storm.
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