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Crude Oil Prices Surge as Hurricane Ida Forces Shutdown Facilities

As the powerful Hurricane Ida hit the Gulf of Mexico, it led to shutdowns and evacuations of hundreds of offshore crude oil-producing platforms. Due to disruptions to oil production due to Ida, the prices of crude oil surged as high as 16 cents per barrel or $72.86 per barrel. The prices rose over 11% than the prices recorded in the previous week. These prices hit high not seen since early August.

The Hurricane hit forced oil production sites shutdowns near Port Fourchon, Louisiana, ashore. It is a hub offshore energy hub for the energy industry. Louisiana is the most hardly hit region from storms and Hurricane and brings new challenges for the region.

The region contributes heavily to the U.S. total oil output. If the region passes through the same issues in the coming days, the oil prices are anticipated to reach higher in the days ahead. About 95% of crude oil companies have been halted their production sites as the Hurricane headed toward drilling rigs and other crude oil infrastructure. The Gulf of Mexico supplies 17% of the total oil of the nation.

More than 300 offshore facilities have been evacuated and moved over ten drill vessels out of danger. Louisiana Offshore Oil Port (LOOP) also stopped its supply projecting the strength of the storm. LOOP unloads supertankers and handles about 10% to 15% of the oil produced in the U.S. domestically. According to reports, LOOP is connected to over half of the U.S. refining capacity.

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