The system is expected to quickly strengthen into the first hurricane of the Atlantic season and strike the U.S. Gulf Coast as soon as Friday.
\n\nAhead of the storm, oil and gas producers shut down a significant share of offshore production in the Gulf, which accounts for almost 15% of crude pumped annually in the U.S.
\n\nAs of Wednesday about 25% of the oil production in the region was temporarily halted, taking about 511,000 barrels a day off the market, according to the Marine Minerals Administration. It said eight of the Gulf’s 371 manned oil platforms were evacuated.
\n\nWith oil prices already high, the production cuts are steep enough to affect markets, though other Gulf hurricanes have caused larger disruptions, said Jim Burkhard, global head of crude oil market research for S&P Global Energy. More concerning, he said, is whether Isaias strikes as a powerful storm near refineries.
\n\n“I would characterize the oil market risk as moderate, but rising,” Burkhard said in an email.
\n\nIsaias is gaining strength as the hurricane closes in on the Gulf Coast. States of emergency have been declared in Alabama and Florida.
\n\nThe hurricane is forecast to track northeastward before turning north, approaching the northern…
Original source: https://www.nbcnews.com/business