Even as Tropical Storm Isaac heads into the Gulf of Mexico and forces companies to halt U.S. oil production there, Brent crude remained steady below $113 a barrel.
Brent went as high as $115.50 on Monday as U.S. refiners shut facilities on the Gulf Coast ahead of the storm, but it ended the day at $112.26. It rose only slightly this morning, while U.S. crude is around $96.
Energy companies have already slashed crude production by 78% in the Gulf of Mexico, and shut-ins are expected to increase over the next few days. The region accounts for nearly a quarter of U.S. oil output, as well as 7% of its natural gas output.
Isaac is expected to make landfall late Tuesday near southeastern Louisiana. It is also expected to be a Category 1 or Category 2 hurricane by then.
Filed under: 24/7 Wall St. Wire, Oil & Gas