Oil prices are on the rise as US refiners come back after Hurricane Harvey and a big jump in geo-political risk as North Korea unleashes an alleged hydrogen bomb. The oil industry must watch the weather again as Hurricane Irma has turned into a massive and dangerous category 5 storm. On top of that, there are 2 other tropical disturbances that are also in play to potentially disrupt energy production and shipping of imports and exports in the Gulf of Mexico. 

The U.S. refineries are coming back and believe it or not, so is oil production and gas production. Last week Valero Energy restarted two Galveston refineries and are now back to normal production rates. Other refineries in the Texas area are restating and should be back to normal in a matter of days. It is being reported that Flint Hills Resources and Citgo Petroleum are in restart but Exxon Mobil Beaumont, Texas refinery may take more time as flooding damaged a lot of its equipment. On top of that an oil field is contained by a levee that flood waters breached on Saturday afternoon leaking oil into the streets and a sheen of oil that will have to be cleaned up before a restart.

Yet just as the industry starts to recover more storms are going to create havoc. Hurricane Irma is getting most of the attention. This storm is a major threat but other storms may impact energy and lives as well. The National Hurricane Center is issuing advisories on Hurricane Irma, located a few hundred miles east of the Leeward Islands. Reuters reports that Hurricane Irma, a powerful Category 5 storm, plowed toward the Caribbean and the southern United States on Tuesday as islands in its path braced for possible life-threatening winds, storm surges and flooding.

Hurricane warnings and watches were in effect for parts of the Leeward Islands, the British and U.S. Virgin Islands and Puerto Rico, in preparation for a storm that was intensifying with 150 mph (240 kph) winds, the U.S. National Hurricane Center (NHC) said. “Dangerous Hurricane Irma heading for the Leeward Islands,” the hurricane center said. “Preparations should be rushed to completion as tropical storm-force winds are expected to arrive in the hurricane warning area by late Tuesday.”