Hurricane Ida brings ‘nightmare scenario’ for gas prices 

Peter Aitken FOXBusiness 

 

Hurricane Ida could create a “nightmare” scenario for national gas prices, according to a market analyst. 

Ida made landfall on Sunday as a Category 4 hurricane near Port Fourchon, Louisiana, which helps to produce around 18 percent of the U.S. oil supply. Port Fourchon also has a role in 90% of the Gulf of Mexico’s deepwater oil production and is a base for more than 250 companies. 

The devastation the hurricane is bringing will have a number of knock-on effects for markets in the next few weeks. Phil Flynn with the Price Futures Group told FOX Business that the storm was on track to hit over a dozen refineries with production capacity of more than 2 million barrels of oil.

“I expect the track of the storm could add anywhere from $.05 – $.10 a gallon,” Flynn said, noting that might be a best-case scenario. He predicted that flooding, power outages and possible extended periods of downtime will add to the cost of gasoline. Read more here.