Hurricane Isaias Shuts In Nearly 63% of Gulf Oil Output as Brent Holds Above $100

Hurricane Isaias has shut in roughly 63% of Gulf of Mexico oil output, about 1.28 million barrels per day, with 121 offshore platforms evacuated, according to market reports on Friday.

Brent crude eased to about $103 and WTI to roughly $91 after President Trump said the U.S. would not strike Iran before the Nov. 3 midterms. Brent had closed up nearly 4% on Thursday, and Houthi attacks near Riyadh and an Iranian claim of a strike on an LPG carrier kept Middle East risk in focus.

For energy holders such as Chevron and BP, the storm adds a supply-side factor to an already volatile oil market. The duration of the shut-ins will determine how much of the disruption feeds into prices and into fuel costs for airlines and shippers.