The United States, as the only superpower, threatens the rest of the world with sanctions, especially when it comes to the energy industry. Sometimes it even seems that no one can gain control over the US. However, it is not entirely true. Every once in a while, the one and only Mother Earth imposes sanctions against the US without warning.
Yet another natural disaster poses a risk to the local oil industry, which may be even more serious than any sanctions. Hurricane Marco and a tropical storm Laura are rampaging through the states of Texas and Louisiana which are considered to be the American oil heartland. According to preliminary estimates, the consequences of this hurricane tandem could be the most devastating since Hurricane Catarina, which hit Louisiana back in 2005.
The aftermath of the natural cataclysm may inflict substantial damage to US oil refineries. As a result, it will take a great deal of time to restore the infrastructure which means that production will have to be completely stopped. The authorities of the two states have already reported significant production cuts. Interestingly, the hurricane has not even increased its force yet. Extreme winds and flash flooding are forecast on the territory of both states.
In addition, terrible weather caused the suspension of production on more than half of the gas fields in the US’s Gulf of Mexico coast. Notably, the price of oil has not been very much affected by the natural disaster, while the futures contracts for October delivery at the Henry Hub have increased to the highest level since last October.
