Oil in Global Economy Series: Hurricane Nate takes 1 million bpd production offline in U.S.

After Hurricane Harvey and Irma devastated the U.S. oil industry, it is now time for Hurricane Nate. While Hurricane Harvey mostly affected refineries, Nate has led to a halt in oil production in the Gulf of Mexico, which contributes 17 percent to the total production of the United States with 1.6 million barrels per day production. According to latest reports, 60 percent of the production from the area or 1 million barrels per day remains offline due to Hurricane Nate.

In addition to that oil, the storm has also closed down natural gas production in the tune of 1.49 billion cubic feet per day. The storm is also likely to affect refinery output as many refineries lie in the projected path with a daily processing capacity of 2.4 million barrels per day.

As of now, the full impact of the Hurricane is not clear but it would surely continue to affect the price of oil, oil products and natural gas for weeks to come.