Oil prices have fallen as traders have remained cautious over a tropical storm Nate, which is advancing towards the Gulf of Mexico that may cause a further impact to normal operations.

Brent crude LCOc1 fell 12 cents at $56.88 a barrel, while the US West Texas Intermediate (WTI) crude CLc1 slipped 16 cents to $50.63, reported Reuters.

The oil market also remained subdued due to the ongoing holiday period in China, one of the biggest consumers of crude oil.

According to the US National Hurricane Center, storm Nate is currently located off the coast of Nicaragua and could develop into a hurricane.

“Storm Nate is currently located off the coast of Nicaragua and could develop into a hurricane.”

It is heading towards the Gulf region that hosts several offshore oil platforms making up to nearly 17% of US output.

Companies including BP and Chevron are shutting down their production facilities in the region, while other operators such as Royal Dutch Shell and Anadarko Petroleum have suspended their operations to certain extent.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Exxon Mobil, Statoil and other producers have also removed all their staff from the platforms.

Phillips 66 also closed its 247,000bpd Alliance refinery located in Louisiana.

The Louisiana Offshore Oil Port, a fuel handling facility in the Gulf of Mexico, has suspended vessel offloading operations.