- Oil prices rose Tuesday morning after yesterday’s broad “risk-off” market plunge
- Ida is having a lasting impact on the U.S. oil market, with some fields in the Gulf of Mexico unable to resume operations until next year
- Royal Dutch Shell announced that the production of two of its largest Gulf of Mexico fields won’t resume until next year after Hurricane Ida inflicted “significant structural damage.” (Bloomberg)
- The outage will disrupt about 300 MBbl/d, according to Bloomberg
- The supply disruption is forcing refiners and other buyers to seek alternative supplies
- Sour crudes on the U.S. Gulf Coast surged after Shell announced the outage
- Mars blend narrowed its discount to WTI futures for October delivery by more than 70% on Monday to 55c/Bbl
- The discount to futures for Poseidon, another sour crude, shrank by 27% to $2