Hurricane Isaias Hits Gulf Oil

Hurricane Isaias has knocked 1.28 million barrels per day of US Gulf oil production offline, up from 185,120 barrels per day two days ago. Operators have cleared personnel from the storm's path, with 62.89% of current Gulf oil production and 57.35% of natural gas production shut in.

The Marine Minerals Administration said 121 production platforms, or 32.61% of the Gulf's 371 manned platforms, were evacuated. Five non-dynamically positioned rigs were also evacuated, and four of the Gulf's 17 dynamically positioned rigs moved off location.

Isaias strengthened into the Atlantic season's first hurricane on Wednesday night and was still gaining strength on Thursday afternoon as it moved toward the northern Gulf Coast. Forecasts had the storm approaching Category 3 strength before weakening ahead of an expected early Saturday landfall.

The current track puts parts of the Florida Panhandle and Alabama at risk for storm surge of up to 7 feet and heavy rainfall, with some locations potentially receiving 10 inches or more. Oil markets were already reacting, with WTI jumping roughly $4 per barrel and Brent gaining nearly $5.

The Gulf shutdown now removes more than 1.2 million barrels per day from US production until offshore facilities can be inspected and restarted. The Marine Minerals Administration said undamaged facilities will return to service once standard checks are completed.

Canadians should expect colder temperatures as they head into the Thanksgiving weekend. As Isaias moves north from the US Gulf Coast, it could impact Canadian weather patterns over the long weekend.

Millions of people from Louisiana to Florida were under hurricane warnings on Thursday as Hurricane Isaias heads toward the US Gulf coast, with weather officials warning of dangerous storm surge, hurricane-force winds, and flooding.