(Satellite photo of cyclone hitting Oman and heading to Iran.)
Was a Category Five earlier today, heading for Oman then Iran, both oil producing countries. They haven't had a storm like this in 60 years, meaning, they're not prepared for it, their facilities aren't prepared for it. Kiss your gas prices, buh bye.
From AP:
Gonu was expected to skirt the region's biggest oil installations but could disrupt shipping in the Straits of Hormuz, causing a spike in prices, oil analysts said.Interesting observation from an oil blog:
Oil prices rose on Monday but retreated Tuesday, although the storm weighed heavily on the market.
"If the storm hits Iran, it's a much bigger story than Oman, given how much bigger an oil producer Iran is," said Antoine Haff of FIMAT USA, a brokerage unit of Societe Generale. "At a minimum, it's likely to affect tanker traffic and to shut down some Omani oil production as a precautionary measure."
Considering the region has never experienced a hurricane, let alone a strong one it is highly unlikely the loading facilities or platforms were constructed to withstand the forces - both wave action and wind force - that they will experience. Significant, damage will occur. How much long term damage, and the volumes associated with it - can not be determined at this time.
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