Hurricane Michael Cuts 42% of U.S. Gulf of Mexico Crude Oil Output

OILMONSTER.COM- Hurricane Michael has knocked out 42% of U.S. Gulf of Mexico daily crude oil production and nearly a third of natural gas production, the largest reductions in a year, according to the Bureau of Safety and Environmental Enforcement.

Companies halted output of nearly 719K bbl/day of oil and 812M cf/day of natural gas by midday, but U.S. crude futures settled 2.4% lower at $73.17/bbl, tracking the weaker U.S. stock market and reflecting the declining importance of Gulf of Mexico production due to growth from onshore shale fields.

Oil producers including Anadarko, BHP Billiton), BP, Chevron and Exxon evacuated workers from 89 Gulf production platforms earlier this week.

Kinder Morgan says its fuel and natural gas lines serving the Southeast are unaffected; construction at its Elba Island, Ga., liquefied natural gas project has been suspended for now.

Courtesy: www.seekingalpha.com