Oil production in the Gulf of Mexico will fully recover only next year

The cumulative loss of production since Ida hit Louisiana reached 30.1 million barrels, making the hurricane the fourth most destructive hurricane in 16 years.

Four weeks after the impact that Hurricane Ida struck in Louisiana, oil production in the Gulf of Mexico is far from being fully recovered. The US Bureau of Safety and Environmental Protection (BSEE) said there were 31 oil rigs idle there as of Thursday, with a production loss of 294,414 barrels that day. The cumulative loss of production since Ida hit Louisiana reached 30.1 million barrels, making the hurricane the fourth most destructive hurricane in 16 years. According to the BSEE forecast, the full recovery of oil production in the Gulf of Mexico will take place only next year.

This event has noticeably shifted the market balance towards deficit: commercial oil reserves in the United States are at their lowest level since 2018, while those in Europe remain below historical averages for this time of year. All this led to a noticeable increase in oil prices this month, and on Friday, Brent quotes reached a record high in almost three years.