Goldman Sachs: Damage to Oil Production From Ida Outweighs Demand

Goldman Sachs said that the impact of Hurricane Ida on oil production was greater than on-demand from refineries, which had a net positive impact on US and global inventory levels.

In a note dated September 9, the investment bank described the damage to products in the United States as “unprecedentedly significant” and predicted a loss of production of at least 40 million barrels.

The American refiners are returning to work at a faster pace than oil production, in contrast to the recovery pattern from previous hurricanes, as three out of nine refineries, representing about 7% of the refining capacity on the American coast on the Gulf of Mexico, stopped completely, compared to the suspension of two-thirds of oil production.

The bank said that the impact on refining is consistent with what resulted from previous hurricanes, where about 1.5 million barrels per day are still suspended, and the recovery is expected to be at the usual place, which is the drop in the rate of disruption by half every ten days.