Several storm systems have formed in the Atlantic, including Hurricane Teddy, Tropical Storm Beta and a new tropical system developing over South Florida.
Hurricane season generally lasts from June 1st through November 30th. Typically, we will not start to see its impact until August which will usually peak into September. Why is this important to know and how does it pertain to the energy industry? In the past, hurricanes have caused billions of dollars’ worth of damage especially along the gulf and Atlantic coastal regions. Its storms impact the infrastructures, power grids, as well as the production of offshore drilling, which can cause major fluctuations in the oil and gas industry.
Just last week, India was hit with the 1st cyclone of the season. Cyclone Amphan struck West Bengal directly wiping out any structure within reach. Amphan’s path of destruction included farmland, schools, businesses, and homes. 10 million people have been affected and 500,000 have lost their homes due to the cyclone. This storm is especially unique because India has recently been on “lockdown” of sorts due to the COVID-19 pandemic. A disaster like this is forcing the intermingling of people that have previously been practicing the social distancing concept to flatten the COVID-19 curve. 3 million people were successfully evacuated prior to the storm, but the balance would rather try to fight off mother nature instead of being confined in a small space. It was a true case of “pick your poison”.
Despite Hurricane Dorian's effects on the Atlantic coast, both locally and across the nation gas prices are expected to continue to fall as we switch to cheaper winter gasoline.
TRADE WARS! TANKER GATE! IRANIAN SANCTIONS! MIDDLE EAST UNSTABLE! MIDDLE EAST PEACE! VENEZUELA SANCTIONS! INVENTORIES UP! INVENTORIES DOWN! REFINERY OUTAGES! PRODUCTION DOWN! PRODUCTION UP! CRUDE CHASES $50!
CRUDE RUNS UP TO $60!
WHAT DOES IT ALL MEAN?