Nearly 30% of US Gulf of Mexico Oil Output Offline after Storm

Cars drive off of Interstate 10 in Laplace, La., on Friday, Sept. 13, 2024, as floodwater still covers the roadway two days after Hurricane Francine swept through the area. (Chris Granger/The Times-Picayune/The New Orleans Advocate via AP)
Cars drive off of Interstate 10 in Laplace, La., on Friday, Sept. 13, 2024, as floodwater still covers the roadway two days after Hurricane Francine swept through the area. (Chris Granger/The Times-Picayune/The New Orleans Advocate via AP)
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Nearly 30% of US Gulf of Mexico Oil Output Offline after Storm

Cars drive off of Interstate 10 in Laplace, La., on Friday, Sept. 13, 2024, as floodwater still covers the roadway two days after Hurricane Francine swept through the area. (Chris Granger/The Times-Picayune/The New Orleans Advocate via AP)
Cars drive off of Interstate 10 in Laplace, La., on Friday, Sept. 13, 2024, as floodwater still covers the roadway two days after Hurricane Francine swept through the area. (Chris Granger/The Times-Picayune/The New Orleans Advocate via AP)

Nearly 30% of US Gulf of Mexico crude oil production and 41% of its natural gas production remained offline on Saturday following Hurricane Francine, the US offshore energy regulator said.

There was more than 522,000 barrels of oil production per day and 755 million cubic feet of natural gas offline due to the storm, the Bureau of Safety Engineering and Enforcement said.

There were 52 oil and gas platforms unmanned by energy workers, down from 171 evacuated platforms at its peak earlier in the week.

The storm, which drew fuel from exceedingly warm Gulf of Mexico waters, came ashore Wednesday in Louisiana with 100 mph (160 kph) winds and drenched a large swath of the South, including parts of Arkansas and Florida. Forecasters say the storm's slow progress will mean days of heavy rain in the Southeast, creating a flash flooding risk.

Another 3 to 6 inches (8 to 15 centimeters), with about 8 inches (20 centimeters) in some locations, were expected in parts of central and northern Alabama through Sunday. In northeastern Mississippi, western Tennessee, western Georgia and the Florida Panhandle, another 2 to 4 inches (5 to 10 centimeters) was expected.

No deaths or serious injuries have been reported in Francine's aftermath.



Gold Rallies to Record High on US Rate Cut Optimism

FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo/File Photo
FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo/File Photo
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Gold Rallies to Record High on US Rate Cut Optimism

FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo/File Photo
FILE PHOTO: A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 7, 2019. REUTERS/Rupak De Chowdhuri/File Photo/File Photo

Gold prices soared to an all-time high on Friday as the dollar weakened amid prospects of super-sized reduction in US interest rates next week, while palladium has gained over 15% so far this week.
Spot gold was up hitting a record 0.3% at $2,567.23 per ounce by 0703 GMT, after high of $2,570.21 earlier in the session. Bullion has gained about 3% for the week so far, Reuters reported.
US gold futures rose 0.6% to $2,595.10.
The dollar fell to a one-week low on Friday, making greenback-priced gold less expensive for other currency holders, with investors on tenterhooks around uncertainty of a 25 or 50 basis point US rate cut next week.
"Regardless of the size of the initial Federal Reserve rate cut, we look to be on the verge of a potentially long and frequent easing cycle, which is a scenario that bodes well for assets such as gold, which are non-yielding," said Tim Waterer, chief market analyst at KCM Trade.
The International Monetary Fund said it was appropriate for the Fed to begin a long-awaited monetary easing cycle at its meeting next week as upside risks to inflation have subsided.
Traders see a 41% chance of a 50-bp reduction and 59% odds of a 25 bp cut.
Investors will scan the US consumer sentiment (preliminary) data, due later in the day, for further clues on rate outlook.
ANZ commodity strategist Soni Kumari said "we are seeing (gold) prices can go to $2,600 in the short term, given the price momentum is looking quite strong right now."
Spot silver rose 0.3% to $30.01 and platinum gained 0.7% to $983.95. Both metals are headed for weekly gains.
Palladium climbed 0.4% to $1,050.50 and was headed for its best week since December 2023, fueled by export curb concerns.
Russian President Vladimir Putin said Moscow should consider limiting exports of uranium, titanium and nickel in retaliation against the West.