Hurricane Beryl Impacts Gulf Coast Oil Production and Prices: A Look at the Latest Developments

Matagorda, Texas, Texas United States of America
About 5.5% of U.S. oil production comes from the Gulf of Mexico, with Shell shutting in production and evacuating personnel from its Perdido platform about 200 miles south of Galveston, Texas which was producing roughly 100,0 barrels per day.
Analysts remain optimistic that Hurricane Beryl will not significantly affect supply or price.
Beryl was downgraded to a tropical storm with maximum sustained winds of 60 miles per hour and is forecast to weaken further.
Colorado State University forecasted an 'extremely active' storm season this year.
Gulf Coast refining operations have been delayed due to the storm, leading to delays in getting products to Florida.
Hurricane Beryl made landfall near Matagorda, Texas as a Category 1 hurricane with maximum sustained winds of 80 miles per hour.
U.S. crude oil prices experienced a slight decline on July 8, 2024, with prices at the pump averaging about $3.50 per gallon nationwide.
Hurricane Beryl Impacts Gulf Coast Oil Production and Prices: A Look at the Latest Developments

U.S. crude oil prices experienced a slight decline on July 8, 2024, as traders assessed the impact of Tropical Storm Beryl on Gulf Coast refining, production, and export infrastructure. The storm made landfall near Matagorda, Texas, as a Category 1 hurricane with maximum sustained winds of 80 miles per hour.

Beryl was downgraded to a tropical storm with maximum sustained winds of 60 miles per hour and is forecast to weaken further. The storm is moving in a northeast direction and has already caused some reduction in refining operations, leading to delays in getting products to Florida. However, gasoline prices are unlikely to be significantly affected.

The Gulf of Mexico produces about 5.5% of oil production in the U.S., with Shell shutting in production and evacuating personnel from its Perdido platform about 200 miles south of Galveston, Texas. The platform was producing roughly 100,00 barrels per day.

Despite the potential impact of Hurricane Beryl on Gulf Coast operations, some analysts remain optimistic that the storm will not significantly affect supply or price. Andy Lipow, president of Lipow Oil Associates, believes that consumers will continue to get their gasoline and most people would not even notice.

Investors are also concerned about the upcoming hurricane season with Colorado State University forecasting an 'extremely active' storm season this year. Prices at the pump were averaging about $3.50 per gallon nationwide on July 8, up from $3.49 last week but down from $3.51 in June.

It is important to note that Hurricane Beryl is just one of many factors affecting oil prices, and other geopolitical events and market dynamics can also impact the price of crude oil.

Sources: CNBC: U.S. crude oil prices fall 1% as market assesses Tropical Storm Beryl impact Oilprice.com: Oil Moves Slightly Lower as Beryl Pummels Texas Bloomberg: Latest Oil Market News and Analysis for July 8


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Confidence

90%

Doubts
  • It's unclear how long the refining delays will last.
  • The exact amount of oil production that has been shut-in is not mentioned in the article.

Sources

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

U.S. crude oil prices fall 1% as market assesses Tropical Storm Beryl impact

CNBC News Spencer Kimball Monday, 08 July 2024 12:38
  • Unique Points
    • Andy Lipow: oil production in the Gulf of Mexico is about 5.5%
    • Prices at the pump were averaging about $3.50 per gallon nationwide on Monday
    • Colorado State University forecasting an ‘extremely active’ storm season this year
  • Accuracy
    • Tropical Storm Beryl made landfall near Matagorda, Texas as a Category 1 hurricane with maximum sustained winds of 80 miles per hour.
    • Beryl was downgraded to a tropical storm with maximum sustained winds of 60 miles per hour and is forecast to weaken further.
    • The storm is moving in a northeast direction.
    • U.S. crude oil futures fell 1% on Monday as traders assessed the impact of Tropical Storm Beryl on Gulf Coast refining, production and export infrastructure.
    • Matagorda is about 150 miles northeast of Corpus Christi, a leading crude export facility in the U.S.
    • Brent September contract: $85.75 per barrel
    • WTI August contract: $82.33, down 83 cents
    • RBOB Gasoline August contract: $2.53 per gallon, down 2 cents
    • Natural Gas August contract: $2.36 per thousand cubic feet, up 4 cents
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Oil Moves Slightly Lower as Beryl Pummels Texas

OilPrice.com Alex Kimani Tuesday, 09 July 2024 06:48
  • Unique Points
    • At least 12 people have been reported dead as a result of Hurricane Beryl.
    • Sea surface temperature has been consistently higher during the past three decades than at any other time since reliable observations began in 1880. 2023 was the warmest year on record according to the U.S. Environmental Protection Agency.
  • Accuracy
    • Hurricane Beryl made landfall near Matagorda, Texas around 4 a.m. local time on Monday.
    • Beryl weakened to a tropical storm but strengthened again late Sunday, packing winds of at least 80 mph due to the hot air in the Gulf of Mexico.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Latest Oil Market News and Analysis for July 8

Bloomberg News Now Jordan Fitzgerald, Tuesday, 09 July 2024 06:48
  • Unique Points
    • Hurricane Beryl looked less likely to pose major disruptions to crude infrastructure in Texas
    • Four straight weekly gains for futures prior to the announcement
  • Accuracy
    • I don’t foresee this storm affecting either supply or price to any significant degree; the consumer will get their gasoline.
    • Oil prices have kicked off the new week on the backfoot with dated Brent and WTI crude slightly lower in Monday’s intraday session.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Crude oil slides as Gaza ceasefire talks trump Hurricane Beryl threat

Seeking Alpha Investment Community Carl Surran Monday, 08 July 2024 11:30
  • Unique Points
    • Chemicals company Chemours is prepared to adjust staffing and secure equipment during and after the storm.
    • Enbridge activated emergency plans for assets along the Gulf Coast due to Hurricane Beryl.
  • Accuracy
    • ][Crude oil futures are tilting lower due to ceasefire talks in Gaza outweighing Hurricane Beryl’s potential effects on US production and operations.][Hurricane Beryl made landfall near Matagorda between Houston and Corpus Christi, causing ports to close for preparation.]
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains an appeal to authority fallacy and a dichotomous depiction. The author presents the opinions of ING analysts without providing evidence or reasoning for their own stance on the matter, which is an appeal to authority fallacy. Additionally, the article presents a false dichotomy by suggesting that either a ceasefire agreement in Gaza is reached or Hurricane Beryl impacts refinery infrastructure, when in reality both events could occur simultaneously. The content of direct quotes from individuals or entities other than the author are not considered fallacies according to the analysis rules.
    • . . .ING analysts say. . .
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication