Isaias shuts in 1.3 million Gulf oil barrels a day, threatens refineries

Hurricane Isaias has shut in about 1.3 million barrels a day of U.S. crude production in the Gulf of Mexico, or roughly 63% of the region’s output, as energy companies evacuate offshore crews and secure facilities ahead of landfall. Analysts said the storm appears to be tracking east of the heaviest refining corridor in Louisiana, limiting the risk of a broader supply shock. But Chevron’s Pascagoula, Mississippi, refinery and Vertex Energy’s Saraland, Alabama, refinery remain exposed. Together they account for about 466,000 barrels a day, or 2.4% of U.S. refining capacity. Any outage could tighten fuel markets further, with diesel stocks already unusually low and Gulf tanker traffic expected to face delays.