Hurricanes And Their Impact On Oil Prices, Major U.S. Oil Companies
The United States is currently bracing itself for hurricane Isaac, which has southeastern Louisiana around early morning today.
- (1888PressRelease) August 31, 2012 - According to the Bureau of Safety and Environmental Enforcement, 93% of U.S. oil production and 67% of natural-gas output has been shut in the Gulf of Mexico.
New Orleans seems to be the most likely victim of this hurricane, which is even more tragic since the city has not yet recovered from the devastating hurricane Katrina, which caused damages of more than a $100 billion in 2005 and led to a loss of around 2,000 lives. Historically oil prices, as discussed below, have initially spiked on concerns regarding disruptions in oil production/refining, and then decreased due to macroeconomic factors and decreased demand, triggered by the economic damage caused by a hurricane.
Hurricane Katrina is the deadliest (based on property damage and loss of life) hurricane to have hit the U.S., and it hit New Orleans on August 29, 2005. The hurricane caused damages worth more than a $100 billion dollars and left around 2,000 people dead.
Hurricane Isaac is expected to follow a similar path to hurricane Katrina and will most likely landfall on New Orleans. Even though the magnitude of Isaac is lower, being a Category 1 hurricane (current speed of 80 mph), it will have a significant economic impact. This is due to increased production of hydrocarbons from the Gulf of Mexico and New Orleans being a main city.
Source URL: http://seekingalpha.com/article/835131-hurricanes-and-their-impact-on-oil-prices-major-u-s-oil-companies
###
space
space
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam