Oil and gas exploration and exploitation companies in the U.S. Gulf of Mexico and refining and chemical plants in Louisiana have ceased production in preparation for Hurricane Ida. According to data from the Bureau of Safety and Environmental Enforcement, as of Saturday, 91% of crude oil production capacity (equivalent to approximately 1.65 million barrels per day) and 85% of natural gas production capacity were closed. The refining and chemical plants along the Mississippi River, with approximately 1.9 million barrels per day of refining and chemical capacity (equivalent to 10% of the total in the United States) have been shut down or their operating rates have been reduced. Oil companies that shut down oil and gas production capacity include: BP, Shell, Statoil, BHP Billiton, Murphy Oil, Chevron, and Exxon Mobil.

According to analysis, the landing site of Hurricane Ida is one of the “worst” locations for the oil industry. The six refineries closed in New Orleans together account for approximately the total daily refining volume of the United States. Of 9%. In addition, the operating levels of three refineries in the nearby Baton Rouge area have declined due to the impact of Hurricane Ida. Together, the total daily refining volume of these three refineries accounted for approximately 3.5% of the total daily refining volume in the United States.

As oil prices rebounded after the sharp drop this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies are expected to continue their plans to increase oil production after meeting this week. The alliance led by Saudi Arabia and Russia is gradually resuming mass production that was suspended during the epidemic. A Bloomberg survey of traders and analysts showed that when the organization meets on September 1, it is likely to approve the next month’s Scheduled production increase plan. Several OPEC+ representatives made the same predictions in private.

Earlier this month, the crude oil market weakened, and the resurgence of the epidemic threatened the demand of China and the United States. But since then, facing a new round of the epidemic, crude oil demand has remained resilient, and oil prices have rebounded, giving OPEC and its partner countries more breathing space. Ed Morse, Head of Commodity Research at Citigroup, said, “The uncertainty surrounding the recovery of the world economy and China’s economy has basically disappeared.” “There is ample evidence that the bottom of oil prices is temporary and overdone. If the recovery continues. , OPEC+ may stick to its production increase plan."

After the unprecedented production cut last spring, OPEC+ production has recovered about 45%. According to the plan led by Saudi Oil Minister Abdulaziz bin Salman, OPEC+ will gradually increase production by 400,000 barrels per day per month until the end of 2022.

This week (August 30-September 5), the market will usher in the US non-agricultural employment data. The 20th ministerial meeting between OPEC and non-OPEC oil-producing countries, the issue of crude oil production may come this week. The oil-producing countries have expressed their views; Fed Bostic will deliver a speech. In addition, there will be US trade account data to be released this week.

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