Tropical Storm Nate, which has already shut oil and gas platforms in the Gulf of Mexico, is set to roil commodities markets once again and threaten orange and cotton crops, Bloomberg reports.
Fourteen storms have already formed across the Atlantic so far this hurricane season, killing hundreds of people in the U.S., Mexico and the Caribbean and causing an estimated $300 billion in damage.
In August, Hurricane Harvey temporarily shut down about 25% of oil and natural gas production in the Gulf and as much as 20% of U.S. refining capacity. A few weeks later, Hurricane Irma devastated Florida citrus groves.
Nate, which is expected to make landfall as a hurricane on Sunday, probably won’t be strong enough to do any lasting damage, says Matt Rogers, president of the Commodity Weather Group in Bethesda, Maryland.
“The track looks a little ominous, but the intensity is underperforming. That is the reason why we may not get big problems out of this,” he says.
Offshore rigs and platforms in the Gulf of Mexico account for about 17% of U.S. oil output and 4% of gas production. Roughly 45% of petroleum refining capacity and 51% of gas processing is on the coast.
