Storm Isaias Threatens Gulf Refining Hubs as Oil Prices Volatile

Key Facts

1Tropical Storm Isaias has formed in the Gulf of Mexico with projections showing it hitting land as a strong hurricane on Friday near the Mississippi-Alabama border.

2Market concerns are focused on potential disruptions to US refining operations, which are currently running at full capacity due to wide crack spreads.

3WTI oil prices fell by $1.14 to $88.29 after previously touching a high of $90.98.

Tropical Storm Isaias has formed in the Gulf of Mexico with projections showing it hitting land as a strong hurricane on Friday near the Mississippi-Alabama border. Investinglive.com reported that WTI oil prices fell by $1.14 to $88.29 after previously touching a session high of $90.98.

Market concerns are focused on potential disruptions to US refining operations, which are currently running at full capacity due to wide crack spreads. While the storm's center is projected to pass east of most Gulf oil infrastructure, any forced refinery shutdowns could further tighten the gasoline and diesel markets at a vulnerable time.