Hurricane Isaias sends oil prices soaring

The price of oil is getting an extra boost as Hurricane Isaias threatens to knock out oil and gas facilities in the Gulf of Mexico.

The price of North Sea crude (Brent) – which is also being pushed up by the uncertain situation in the Middle East – rises by 5 per cent to over $105 per barrel.

According to US authorities, roughly 25 per cent of oil production and 16 per cent of fossil gas production in the region has already been shut down due to the risk of damage in the hurricane’s path.

An increasing number of forecasts suggest that the hurricane – which is still gaining strength – will make landfall along the coast of Louisiana and Texas late on Friday (9 October) or early on Saturday (10 October). Should the hurricane’s path shift further west, even more offshore production facilities in the Gulf of Mexico risk having to shut down.

Wind gusts in the hurricane have been measured at 33 metres per second.

^{Cover image: A massive storm – Hurricane Isaias – has rapidly intensified in the Gulf of Mexico. NOAA/AP/TT}