Storm Cristobal makes landfall on Mexico Gulf coast

Bloomberg

Tropical Storm Cristobal brought heavy rain to southern Mexico, and with a forecast that has it re-entering the Gulf of Mexico on Friday, oil-platform workers are already being evacuated.
The storm, carrying winds as high as 40 miles (64 kilometres) per hour, will dump more “extreme rainfall” on far southern Mexico, extending to Guatemala and El Salvador, according to the US National Hurricane Center. It’s then seen tracking north towards the US coast between Texas and the Florida panhandle.
Energy prices are already reacting in the US, with Houston benchmark gasoline moving higher as traders secure supply ahead of the storm. Cristobal could push the average retail price of a gallon of gasoline over $2, according to AAA.
Storms in the Gulf are closely watched by the energy industry because offshore platforms account for 16% of US crude oil production and 2.4% of natural gas output, according to the Energy Department. Additionally, more than 45% of US refining capacity and 51% of gas-processing capacity is located on the coast.
Even a weak system can force evacuations and temporary shutdowns.
BP Plc said it was removing offshore personnel and ramping down production at its Thunder Horse, Atlantis and Na Kika oil and gas platforms. It also said non-essential workers were being evacuated from the Mad Dog platform, though production remained unaffected.
The forecast isn’t yet clear for the US coast. There’s a chance Cristobal could reach hurricane strength, which entails winds of 74 mph or more, depending on how it fares after swinging back into the Gulf, said Paul Walker, a meteorologist with AccuWeather Inc in State College, Pennsylvania. Storms need warm ocean water to grow stronger, and weaken without it.
On its current track, Cristobal is forecast to re-emerge over the southern Gulf of Mexico on Friday and move northward over the weekend, according to the National Hurricane Center.