Hurricane Irma Prompts Oil Storage, Port Shutdowns
Hurricane Irma prompted the shutdown of oil storage facilities along the hurricane’s path in the Caribbean. Tens of millions of barrels of oil will lie idle in the Caribbean for days as Hurricane Irma makes landfall. Florida ports will close too, and may remain closed for an extended period based on storm damage. Florida receives 97 percent of its oil products by sea, so extended port closures will have consequences for fuel prices throughout the state.
The news cycle this past week has been dominated by monitoring and assessing the evolution and effects of severe weather both domestically and internationally. Read more about the effects of Hurricanes Harvey and Irma in our Advisor Pulse Updates >
Mexico’s Fuel Supplies are Stable Despite Massive Earthquake and Hurricane Katia
Mexico’s state oil company, Petroleos Mexicanos (PEMEX), is reassuring the country that fuel supplies will not be interrupted despite a magnitude 8.1 earthquake that killed at least 61 people and Hurricane Katia, which has slammed its Gulf Coast shores. Pemex said in a Friday night statement that the company has “established a strategy to supply gasoline, diesel and jet fuel from other markets” so that “inventories are sufficient to cover demand.”
In Other News
The North American Council for Freight Efficiency (NACFE) and Carbon War Room began their Run on Less program this week to demonstrate how Class 8 trucks can use different technologies to achieve the best fuel economy possible. Seven fleets are participating in a real-time demonstration of truck fuel efficiency technology over the next two-and-a-half weeks. The seven trucks hauling freight and being monitored for Run on Less averaged a 10.0 MPG fuel efficiency during the first three days of the program.
The U.S. House passed a bill on Wednesday that will allow self-driving car manufacturers to put thousands of autonomous cars on the road over the next few years.
Hurricane Irma could be catastrophic to shippers’ supply chains and shipments throughout the Caribbean and southeast United States. Irma will make landfall in Florida early on Saturday as a likely Category 4 hurricane. The ports of Jacksonville, Savannah and Charleston are presently forecast in Irma’s path and will be disrupted.