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Gasoline Price Rises as US Oil Producers Shut Wells

Gasoline Price Rises as US Oil Producers Shut Wells Gasoline Price Rises as US Oil Producers Shut Wells

Energy companies on Friday evacuated 10% of production platforms and shut nearly 30% of offshore oil output, pushing gasoline prices higher, as Tropical Storm Cristobal entered the US Gulf of Mexico.
Cristobal on Friday was located 860 km south of the mouth of the Mississippi River and moving north at 21 km per hour, according to the US National Hurricane Center, Reuters reported.
Equinor, BP and Occidental Petroleum Corp halted production and evacuated offshore staff, while Murphy Oil Corp and Royal Dutch Shell evacuated some platforms, the companies said.
Operators evacuated 65 offshore facilities on Friday and moved seven drill rigs out of the storm’s path.
Spot Gulf Coast gasoline prices rose half a penny on Friday as buyers acquired contracts in case the storm disrupts the market, traders said.
Cristobal is forecast to strike central Louisiana on Sunday after passing through US offshore oil production areas. US Gulf of Mexico waters account for about 15% of total US crude production.
CBOB gasoline rose a half penny to trade at 11.50 cents per gallon below futures, traders said.

 

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