Nearly Half of Offshore Oil Production in the Gulf of Mexico Remains Offline
September 15, 2021
The API said that crude oil stocks were down 5.4 million barrels and the supplies of crude oil in Cushing, Ok were down 1.3 million barres. Gasoline supplies were down 2.8 million barrels and distillates were down 2.9 million barrels. This report is supportive of prices currently until the market sees the DOE inventory data here this morning.
The estimates for today’s DOE inventory report from the S&P Global Platts survey are looking for crude to be down 3.5 million barrels, gasoline supplied down 2.2 million barrels and distillates down 2.0 million barrels.
From a Reuters report. US energy producers have cut so deeply into a once-large reserve of oil wells waiting to be turned on they soon may have to resume drilling to keep production from sagging, executives and analysts said.
The energy market started out higher in yesterday’s trading but pulled back as the damage done by Hurricane Nicholas was less than expected. No additional offshore production damage was reported, and refineries seem to escape with no additional concerns.
Price also got some selling pressure from the International Energy Agency reported that lowered their 2021 oil demand forecast by 105,000 BPD.
The Bureau of Safety and Environmental reported yesterday that 39.6% (721,217 BPD) of all Gulf of Mexico offshore oil production and 48% (1.075 mcf/d) of all off-shore natural gas production is still shut due to Hurricane Ida.