Storm NATE is Threatening the Oil Production

Trade Magnates -Oil markets seems to be uncertain on Friday as investors continued to be cautious ahead of the tropical storm Nate that is expected to hit the US Gulf Coast this weekend. As the storm is heading to the Gulf of Mexico, investors are watching their trading positions closely. Investors are expecting the Oil production and therefore the trading prices because of the storm.

On the other hand, OPEC and other oil nations have backed oil prices by suggesting for long-term oil production cuts. Brent Crude and WTI Crude have dropped between 10-20 cents a barrel.

The storm forecasts have triggered the US Gulf production which will has a great influence on the Oil prices. In addition, the long public holiday in China has impacted the Oil prices.

The storm heads fromthe coast of Nicaragua, into the area of the Gulf. The Louisiana Offshore Oil Port, stated this Friday that it had stopped vessel offloading operations putting threat on the most important fuel handling facility port in the Gulf of Mexico. This area produces around 17% of the US oil, and with the expectation of the storm to reform into a hurricane, this area is at a huge risk that will impact the Oil production and its prices.

BP and Chevron have suspended production at all Gulf platforms. The Royal Dutch Shell and Anadarko Petroleum have closed some Gulf activities. While other producers have withdrawn staff from their platforms as the storm is heading closer to the platform shores.

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