Hurricane forecasts make oil sector hopeful

HOUSTON (Reuters) – Forecasts for a relatively quiet U.S. hurricane season have given the country’s storm-weary oil sector hope for reprieve from winds and waves that sank platforms and flooded refineries in recent summers.

Colorado State University’s widely watched weather team downgraded its outlook this week for the number of named storms during this June 1-November 30 hurricane season, pointing to cooler seas and the possibility of a weak El Nino.

Other forecasters are also calling for a quieter hurricane season than last year’s, which produced 16 named storms including a handful that knocked out U.S. offshore oil and gas production and damaged refineries on shore.

“We’re very optimistic,” said Judy Penniman, spokesperson for the American Petroleum Institute. “Hurricanes are dangerous to industry and they are dangerous to people. We would be very pleased if forecasts were true that this year was quieter.”

Hurricane-related disruptions to energy infrastructure can trigger price spikes for gasoline, diesel and globally traded crude oil, and can cause billions of dollars in damage.

Reuters