US forecasters said on Tuesday a storm forming in the Gulf of Mexico and speeding towards Louisiana and Mississippi would become the first Atlantic hurricane of 2026 within two days.
Currently named Tropical Depression Nine, the cyclone would be at tropical storm strength by early Wednesday, the National Hurricane Center said.
“The depression is expected to pass to the north of the Yucatan Peninsula on Thursday, and approach the US northern Gulf Coast on Friday,” the Hurricane Center said in a statement.
The storm is forecast to pass through offshore areas with oil and gas production facilities and onshore areas with major refineries. Any impact could further tighten energy markets and drive up gasoline and diesel prices already soaring due to the US-Israeli war with Iran.
The offshore areas in the Gulf in the storm’s path produce 15% of US crude oil and 5% of the country’s natural gas.
In the forecast landfall area the storm could affect six refineries operated by Shell, Valero Energy, Marathon, PBF Energy, and Chevron.
Refineries in US Gulf states account for about 50% of the national capacity of 18.2 million barrels per day (bpd).
(Reporting by Sumit Saha and Erwin Seba; Editing by Sonali Paul)