As of yesterday the Bureau of Safety and Environmental Enforcement said that from operator reports, it is estimated that approximately 49.33% of the current daily oil production in the Gulf of Mexico has been shut-in.
The oil complex is in a battle between the perception traders, who look for more stimulative measures, and the reality traders, who see the global economy is slowing and demand for oil will continue to decline.
As Tropical Storm Isaac moves up the Mississippi River Valley with drenching rain, it will probably miss the drought-parched areas of the Midwest that need water most while ruining crops in other areas waiting for harvest.
As Hurricane Isaac passes through the area over the next several days the industry will be able to quickly assess the condition of the oil and Nat Gas facilities. Until then, it focuses on inventories.