Hurricane Isaias threatens Gulf refineries, could lift fuel prices

Although Hurricane Isaias is projected to skirt the main Gulf Coast oil complexes, it could still trigger power failures that force the shutdown of Chevron’s facility in Pascagoula, Mississippi, and Vertex Energy’s refinery in Mobile, Alabama, together representing 2.4% of national refining capacity. Energy analysts say a full halt could cause diesel prices, already above $6, to climb close to $7, while gasoline might only see modest cent-level increases.

The storm has already prompted the evacuation of personnel from about 129 offshore platforms, halting roughly one-third of Gulf of Mexico production, or about 1.5 million barrels per day. Companies such as BP and Shell have also reported platform evacuations. Experts note that the broader market is still more influenced by the Middle-East conflict, and that any production loss is likely to be restored within days if facilities escape major damage. Brent crude remains above $104 a barrel, reflecting ongoing geopolitical uncertainty.