🚨 A NEW cluster of developments is significant enough to adjust the WTI ledger: storm risk in the Gulf of Mexico has shifted from “monitoring” to an actual operational response by oil companies.
Tropical Depression Nine / Gulf of Mexico — headline + forward physical-supply risk: 🟢 Bullish +2. The NHC officially upgraded the system to Tropical Depression Nine at 21:00 UTC on 6/10, with sustained winds of 35 mph, and forecasts rapid strengthening: to a tropical storm on the morning of 7/10 and a hurricane on Thursday 8/10, before moving toward the northern Gulf Coast. Reuters noted that the forecast track passes through an offshore area responsible for about 15% of U.S. crude production, and could also affect six refineries operated by Shell, Valero, Marathon, PBF, and Chevron; the Gulf Coast states alone account for about half of U.S. refining capacity.
$CL #OilMarket
Tropical Depression Nine / Gulf of Mexico — headline + forward physical-supply risk: 🟢 Bullish +2. The NHC officially upgraded the system to Tropical Depression Nine at 21:00 UTC on 6/10, with sustained winds of 35 mph, and forecasts rapid strengthening: to a tropical storm on the morning of 7/10 and a hurricane on Thursday 8/10, before moving toward the northern Gulf Coast. Reuters noted that the forecast track passes through an offshore area responsible for about 15% of U.S. crude production, and could also affect six refineries operated by Shell, Valero, Marathon, PBF, and Chevron; the Gulf Coast states alone account for about half of U.S. refining capacity.
$CL #OilMarket