• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day Is Europe heading for winter of discontent with extensive gas shortages?
  • 8 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 1 day ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 1 hour Wind droughts
  • 7 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 17 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days Xi Is Set To Be Re-Elected As China’s Leader
  • 11 days Oil Prices Fall After Fed Raises Rates
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 1 day Australian power prices go insane
  • 12 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day Europeans and Americans are beginning to see the results of depending on renewables.

U.S. Oil Refiners Brace For Hurricane Season

U.S. oil markets are preparing for hurricane season amid already low oil product stockpiles, as forecasts predict a more active season this year.

Between six and ten hurricanes could form in the Atlantic this hurricane season, which starts next month and runs through November, with peak season in September. Three of those are set to become major storm systems, according to the U.S. National Oceanic Atmospheric Administration’s (NOAA) Climate Prediction Center.

Ongoing La Nina and above-average Atlantic temperatures are contributing to the forecasts.

“For the 2022 hurricane season, NOAA is forecasting a likely range of 14 to 21 named storms (winds of 39 mph or higher), of which 6 to 10 could become hurricanes (winds of 74 mph or higher), including 3 to 6 major hurricanes (category 3, 4 or 5; with winds of 111 mph or higher). NOAA provides these ranges with a 70% confidence,” a Tuesday press release said.

The hurricane season is particularly worrisome for the oil industry this year, with refineries and offshore platforms often shutting down and evacuating for safety reasons with some of the more serious storms.

But this year, low product inventories and soaring gasoline and diesel prices are adding to the market concern in the runup to hurricane season.

Refineries in the United States are operating above 90% as of May 13, while total motor gasoline inventories continue to drop and are about 8% below the five-year average, according to the EIA’s Weekly Petroleum Status Report. Distillate fuel inventories increased in week ending May 13, but are 22% below the five-year average.

Meanwhile, crude stocks are 14% below the five-year average.

NOAA stressed that its outlook is for overall seasonal activity “and is not a landfall forecast.”

NOAA will update its forecast in early August.

By Julianne Geiger for Oilprice.com

More Top Reads from Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News