Ida now a tropical storm, Gulf oil supply steady

Crude oil fell in New York after Tropical Storm Ida weakened in the Gulf of Mexico as it approached the US coast, reducing the potential of further oil supply disruptions.

Ida’s sustained winds have dropped to 65 miles (104 kilometers) per hour from 70 mph earlier, with additional declines expected later today as it makes landfall, the National Hurricane Center said on its Web site. Producers have begun preparations to resume operations. The dollar rebounded from a two-week low against the euro, reducing the appeal of commodity purchases as an inflation hedge.

“Most people feel that the storm isn’t going to be that severe,” said Anthony Nunan, an assistant general manager for risk management at Mitsubishi Corp. in Tokyo. “This is the last hurrah for the hurricane season.”

Workers were evacuated in the Gulf of Mexico and oil companies idled 29.6 percent of oil and 27.5 percent of natural gas output, according to government data. Ida was centered 100 miles south- southwest of Mobile, Alabama, at 9 p.m. local time and was moving north at 13 mph, the center said.

Marathon Oil Corp. said it may start work on bringing output back tomorrow. The company had evacuated and shut in production at a platform located at Ewing Bank 873, which can produce the equivalent of about 12,000 barrels of oil a day, Lee Warren, a company spokesman, said in an email.

Tags:  Gulf of Mexico, Ida, oil supply