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Are Oil Prices Heading Back To $120?

Last week’s sell-off by speculators…

Offshore Gulf Of Mexico Operations Continue As Cindy Rages On

Two of British Petroleum’s major projects have had the storm pass over them, with equipment successfully weathering rain and minor ocean swells. The oil major had evacuated non-essential workers from the Mad Dog and Atlantis platforms, but those who manage production remained onsite due to the storm’s waning severity.

“Our top priority is the safety of all personnel and protecting the environment,” BP said, according to the Houston Chronicle. “We remain prepared to respond as conditions warrant.”

Chevron and Anadarko Petroleum both have projects in the Gulf of Mexico, and they also evacuated non-essential personnel.

Reuters Tuesday on Tuesday that the storm’s slow speed meant it would produce rain for a “long” time.

The Louisiana Offshore Oil Port (LOOP), the largest private crude storage facility in the U.S., stopped offloading procedures in anticipation of the storm. The port’s management expected no disruptions in deliveries from a hub in Clovelly, Louisiana.

On shore, Cindy is expected to bring a foot of rain to the states bordering the gulf on Thursday, potentially causing life-threatening flash floods, according to the National Hurricane Center. Winds could speed up to 50 mph.

Hurricane season began in the Atlantic Ocean and the Gulf of Mexico officially on June 1st, but this year, the first tropical storm, named Arlene, hit in April.

By Zainab Calcuttawala for Oilprice.com

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