Hurricane Laura builds, nears US Gulf coast: Update

Market: Crude oil, Oil products
26/08/20

Adds context throughout.

Hurricane Laura strengthened to a powerful storm and is forecast for landfall tonight near a US crude export hub and about 10pc of the nation's refining capacity.

Federal meteorologists forecast Laura to strengthen to a major hurricane capable of 130-156mph (209-251km/h) winds before landfall in a zone that includes Beaumont, Texas, and Lake Charles, Louisiana. The Port of Beaumont accounted for 13pc of the 3.2mn b/d of US crude exports over the first six months of the year. Terminals there are a destination for Bakken crude and other domestic grades.

The track drifted east from earlier forecasts that saw the storm more directly pummeling another 2.3mn b/d of refining capacity and port infrastructure near Houston, Texas. More than 15pc of US refining capacity has already idled or reduced rates to secure facilities and workers ahead of the storm.

Floodwaters, power outages and debris from major hurricanes can disrupt onshore and port operations for at least a week after landfall, depending on the storm's ultimate severity.

Laura already shut around 84pc — or 1.6mn b/d — of US Gulf of Mexico crude production, according to the US Bureau of Safety and Environmental Enforcement (BSEE).

The hurricane's maximum sustained winds increased overnight to near 115 mph (185 km/h), according to the US National Hurricane Center (NHC), and are expected to be around that level at landfall.

By Elliott Blackburn and Caroline Varin

Hurricane Laura shuts US refineries	'000 b/d
Refiner	Capacity

Shut or reduced capacity
Citgo Lake Charles	425.0
Phillips 66 Lake Charles	249.0
Motiva Port Arthur	600.0
Total Port Arthur	240.0
ExxonMobil Beaumont	362.0
Marathon Petroleum Galveston Bay	585.0
Valero Port Arthur	325.0
Chevron Pasadena	100.0
Total	2,886.0
Other capacity
Valero Houston	191.0
Valero Texas City	225.0
Shell-Pemex Deer Park	340.0
ExxonMobil Baytown	560.5
ExxonMobil Baton Rouge	502.5
Delek Krotz Springs	80.0
All capacity	4,785.0
Company information

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