Tropical Storm Barry threatens Louisiana oil rigs
Little impact on oil prices expected from Tropical Storm Barry?
Louisiana Oil and Gas Association President Gifford Briggs on the potential impact of Tropical Storm Barry on the oil market.
Louisiana is under a state of emergency as residents brace themselves for epic flooding where as much as 20 inches of rain is expected along the Gulf Coast.
U.S. oil producers have evacuated oil platform workers from 257 offshore facilities and seven rigs, halting daily production of more than one million barrels per day.
“Just those impacted by the storm have gone through the necessary emergency procedures to evacuate personnel and prepare for the worst,” Louisiana Oil & Gas Association President Gifford Briggs said exclusively on FOX Business' “The Claman Countdown” Friday.
Oil prices have seen a slight increase settling at $60.21 a barrel despite Barry already shuttering 59 percent of U.S. Gulf of Mexico oil output and nearly 49 percent of natural gas production.
Briggs said consumers and investors should expect oil prices to return to normal levels as long as the storm passes through the gulf with no significant damages and major refinery shutdowns.
“Only on a much larger scale storm will we see long-term impact to prices,” he said.
Oil prices posted weekly gains of 4.8 percent amid Gulf of Mexico storm and Middle East tensions.
Tropical storm Barry strengthened Friday as it moved through the Gulf and is expected to hit inland over Louisiana and Mississippi Friday night into Saturday morning. The storm has the capability of turning into a category 1 hurricane before slamming into the Louisiana coastline.
Louisiana Oil & Gas Association represents more than 400 energy companies including Chevron, ExxonMobil, and Talos Energy.