By Jessica Resnick-Ault

NEW YORK (Reuters – September’s oil production dropped 3.5% following Hurricane Ida, which temporarily halted all crude oil production in Federal waters of the Gulf of Mexico. This was according to a U.S. Energy Information Administration report that Tuesday.

The report stated that crude output fell 380,000 barrels per hour to 10.809 million bpd, from an August revised 11.189.2 mln. bpd. Offshore production fell by 464,000 BPD, offsetting gains onshore.

Ida caused a disruption in Gulf of Mexico oil production when it traveled through the Gulf towards the end of August. According to the September EIA Report, the storm halted 96% of oil production and 94% of federal Gulf of Mexico production. The disruptions continued through September.

The EIA reported that onshore oil production rose by 87,000 barrels per day in Texas (the top-producing state), while North Dakota saw a gain in output of just 8,000 barrels.

Oil markets closely monitor U.S. production, as the country struggles to recover from pre-pandemic levels. September production was 2,000,000 bpd lower than the March 2020 record.

Demand grew as production declined in the month.

From a year before, September saw an increase of 9.8% in total U.S. petroleum consumption, which was 1.81 million barrels per day. To account for seasonal fluctuations in demand, the year-on-year changes in demand are measured.

September saw a 6.8% increase in demand for distillates, including diesel fuel, and a 5% rise in gasoline demand.

Natural gas production in the United States, excluding Alaska, fell to 104.672 million cubic yards per day in September, from 105.354 in August. According to the EIA, natural gas production offshore dropped by 40%, falling to 1,203,000,000 cubic feet per day.