|A trader watches the trading board while working in the crude oil futures pit on the floor at the New York Mercantile Exchange in New York in April.(Jin Lee/Bloomberg)|
Tropical Storm Edouard is beating a path toward the U.S.’s refining hub around Houston, but you wouldn’t know it by following the oil and natural gas markets today.
Crude was down more than $4 early this afternoon to about $120.89 per barrel, while natural gas was down about 65 cents to $8.74 per mm/BTU.
The storm formed quickly and was essentially on top of some of the most prolific production regions in the Gulf pretty early on, so most producers just kept on pumping. Unless you’re a seasoned rig worker you probably wouldn’t want to be out on a platform in the middle of it, but one producer said the current intensity is similar to the storms that regularly show up in the Gulf in the Winter.
The Minerals Management Service’s daily report on Gulf of Mexico oil and natural gas input shows a fairly modest impact from the storm so far:
• About 0.87 percent of the oil production in the Gulf has been shut-in. Estimated oil production from the Gulf of Mexico as of January 2008 was 1.3 million barrels of oil per day.
• About 7.21 percent of the natural gas production is shut-in. Estimated natural gas production from the Gulf of Mexico as of January 2008 was 7.7 billion cubic feet of gas per day.