Hurricane Ida shuts down refineries — here's what it means for gas prices

Hurricane Ida is likely to lead to some increase in gasoline prices, but nothing dramatic, analysts say.

Oil prices have not surged despite Ida forcing the shutdown of 96% of oil production and 94% of natural gas output in the U.S. Gulf of Mexico. Oil prices are the biggest contributor to prices at the pump.

At least nine refineries in Louisiana have reduced production or shut-in operations in response to the storm, together accounting for about 13% of the total U.S. refining capacity, according to the Department of Energy.

The Gulf is normally home to 16% of U.S. crude oil production, 2% of its natural gas output, and just over half of the nation’s refining capacity.

Several pipelines have also shut down operations as a precautionary measure, including some of the Colonial Pipeline, the key hub for transportation fuels that was hit by a cyberattack in April, which halted deliveries across the Southeast and lead to panic purchases of gas.