Hurricane Milton closes in on Florida: Update

Spanish Market: Crude oil, Natural gas, Oil products
09/10/24

Strong winds and heavy rainfall are lashing Florida's west coast ahead of Hurricane Milton, which is forecast to make landfall late tonight as a major hurricane.

The growing risk of life-threatening storm surge and flooding have sparked mass evacuations given Milton's potential to be one of the most destructive hurricanes on record to strike the region. Multiple tornado warnings have also been issued across the Florida peninsula.

Milton was located about 100 miles southwest of Tampa at 4pm ET today, packing maximum sustained winds of 125mph, according to the National Hurricane Center. It was moving to the northeast at 17 mph.

"On the forecast track, the center of Milton will make landfall along the west-central coast of Florida tonight, cross the Florida peninsula overnight and early Thursday, and move off the east coast of Florida over the western Atlantic Ocean on Thursday," the center said.

Milton is expected to remain at hurricane strength as it sweeps over the Florida peninsula, before gradually weakening as it moves back out to sea.

Fuel supplies, prices tighten

Mandatory evacuations for hundreds of thousands of west coast Florida residents led to a fuel shortages in some areas ahead of the storm. The state waived four statutes regulating fuel sales, storage and distribution to shore up supplies and has been escorting fuel trucks to retail stations that have run dry.

Prices for Florida CBOB delivered at Tampa and Port Everglades fell by 0.75¢/USG to $2.08/USG today, down from their highest point since mid-August on Monday at $2.18/USG. Cash differentials were stable in the gasoline cargo markets at Argus Gulf coast Colonial CBOB +10¢/USG.

Florida ultra-low sulphur diesel (ULSD) delivered to Port Everglades fell by 2.23¢/USG to $2.30/USG today. Cash differentials were unchanged in the waterborne ULSD cargo markets at Argus Gulf coast Colonial ULSD +12.25¢/USG.

Milton's storm surge and destructive winds in the Tampa area have the potential to significantly damage a key import hub from which refined products are sent by pipeline to the Orlando area and distributed by truck throughout the state. If terminals at the port are quick to reopen, blocked roads and flooding could prohibit fuel truck deliveries to gas stations that may not even have power.

The offshore oil and natural gas hub in the Gulf of Mexico was largely spared as Milton's track took it well south of most platforms.

By Stephen Cunningham, Stephanie Crawford, Cooper Sukaly and Nathan Risser

Hurricane Milton projected path

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