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MARKETS: US crude oil production could be impacted by storm, says AccuWeather.com

Thursday, 14 January 2010 19:38

(EnergyAsia, January 15 2010, Friday) – US-based AccuWeather.com said crude oil production in the Gulf of Mexico could be affected this weekend by a storm with potential for conditions similar to a minimal tropical storm.

“An El Nino-based rogue storm for the Gulf states occurring Friday afternoon into Saturday will produce gales up to 80 km per hour and 3-5 metre waves,” said AccuWeather.com senior expert meteorologist and expert long-range forecaster Joe Bastardi.

Oil and natural gas platforms scattered along the Gulf of Mexico could be disturbed as a result of the impending weather.

“Normal oil and gas production processes could be disrupted this weekend, like the disruptions that happen when a weak hurricane strikes,” said Mr Bastardi.

The storm will begin Friday afternoon (January 15) around 1pm for the western and central Gulf, moving through the eastern portion of the region on Saturday (January 16).

Crude oil prices fell below $80 a barrel Wednesday (January 14, US) with warmer weather in the forecast for the eastern portion of the US through the middle of January. Analysts expect the Northeast to decrease its demand for heating oil over the next week's warming trend.

However, the warming trend will come to an end by the closing of the month.

“Cold temperatures will be back by the last week of January,” Mr Bastardi said.

As for gasoline prices, prices are nearing a national average of $3 per gallon in the US, rising 14 cents in the last month. Some analysts expect January gasoline prices could set the precedent for the rest of 2010.


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