News Summary: Oil production returning after Isaac
SLOWLY GETTING BACK TO NORMAL: Oil and gas production in the Gulf of Mexico is returning to normal in the aftermath of Hurricane Isaac. Gulf Coast refineries are also ramping up gasoline production after shutting down in anticipation of the storm.
THE NUMBERS: The government reported Monday that oil production is down 800,000 barrels per day, an improvement of 100,000 barrels per day from Sunday. At the height of the storm 1.3 million barrels per day were offline. Nine refineries in the path of Isaac are restarting or operating at reduced rates, 1 has returned to full operation and 1 is still shut down because it is still without power.
PRICE SPIKE LIKELY OVER: Gasoline prices fell — slightly — Monday to $3.827 after a week-long spike that pushed the national average price of gasoline up 11 cents. Analysts expect prices to decline in the coming weeks as refineries come back online, the summer driving season ends and refiners switch to cheaper winter gasoline blends.