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Home THE INSIDER

Russia will increase oil supplies to the United States due to the aftermath of Hurricane Ida – Bloomberg

by novichoktimes
September 9, 2021
in THE INSIDER
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Russia will increase oil supplies to the United States amid the suspension of oil production in the Gulf of Mexico due to Hurricane Ida, writes Bloomberg, citing unnamed sources familiar with the situation.

According to the agency, imports of Russian Urals oil will increase in late September-October. The reason is that 77% of the production capacity on the US shelf in the Persian Gulf is still closed, even 10 days after Ida reached the Louisiana coast.

Reduced oil production estimated in 20.6 million barrels, Bloomberg notes. This is more than any other storm in 13 years. In particular, due to the disaster, the West Delta-143 oil transshipment station, owned by Royal Dutch Shell, was damaged (through it, oil from the Gulf of Mexico is pumped to the coast). This situation is forcing American refineries to look for an alternative.

The increased demand for Russian oil has led to an increase in prices – Urals fuel is similar to the grades produced in the Gulf of Mexico, the newspaper writes. So, the cost of Urals reached 7 month high. On September 8, the discount on it compared to the price of Dated Brent oil was $ 1.05 per barrel. Before the hurricane, a barrel of Urals was $ 1.95 cheaper than the American one.

Category 4 hurricane Ida struck Louisiana in the southern United States last Sunday, September 5th. At the time the hurricane reached the coast, the wind speed reached 150 miles per hour (over 240 km / h). Later, the hurricane spread to other states. As a result of the consequences perished more than 80 people in the states of New York and New Jersey.



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