Hurricane Ida wreaked havoc on the southern state of Louisiana on Sunday, bringing violent rains and strong gusts that knocked out power to more than 700,000 people. The storm made landfall as a Category 4 hurricane with winds of 150 mph earlier in the day, on the 16th anniversary of Hurricane Katrina.
As the storm approached key US offshore oil fields on Saturday, oil companies halted over 91% of US Gulf of Mexico crude oil output. Gas prices in the Southeastern and Mid-Atlantic areas could likely jump if the storm hits vital refineries. However, economists said Sunday that the impact of Hurricane Ida on the US economy should be limited if damage estimates do not climb dramatically and refinery shutdowns do not last too long.
Of course, stock and gas prices aren’t the only concern. Thousands of people are being forced to evacuate as the storm threatens to damage over 900,000 homes, and the state is estimated to suffer over $100 billion in damages.
Ida is the second strongest hurricane to strike Louisiana, coming behind the devastating Hurricane Katrina. I visited the city of New Orleans, LA, when I was a teenager and what stood out the most was the city’s culture. The music, the mouth-watering food, and the lively people made it a place to remember. So, to all Invstrs in Louisiana, please stay safe. You are in our thoughts.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.