Oil companies evacuate workers as storm heads for U.S. Gulf of Mexico

The Royal Dutch Shell logo is seen at a Shell petrol station in London, January 31, 2008. REUTERS/Toby Melville/File Photoon Thursday began evacuating non-essential personnel from offshore U.S. Gulf of Mexico platforms ahead of a storm expected to enter the Gulf this weekend.

A storm brewing in the Caribbean Sea could become a major hurricane this weekend and strike the U.S. Gulf Coast by Sunday, the National Hurricane Center said. Hurricanes with winds of up to 111 miles per hour are classified as major and can bring devastating damage onshore. "This storm has the potential for rapid increases in intensity before it comes ashore" because of extremely warm waters off Louisiana, said Jim Foerster, chief meteorologist at DTN, which provides weather information to offshore oil and transportation companies.

Shell said evacuations covered all eight of its Gulf of Mexico properties and a floating production and storage vessel was being moved out of harms way. Chevron said its Gulf of Mexico oil and gas production remained at normal levels. "Water temperatures are 85 degrees to 88 degrees Fahrenheit , that's anomalously high, 3 to 5 degrees higher than it normally would be," said DTN's Foerster. A projected path over warm waters will result in heavy rains and flooding as it nears the central Gulf Coast, he said.More from ReutersSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.

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U.S. heavy oil prices rise as market braces for Mexico supply hitPrices of heavy sour crude oil grades have been rising in the U.S. Gulf Coast, traders said, as the market braces for a disruption of supplies from Mexico in the wake of a fire that has cut state-run Pemex's oil output by about 25% since Sunday.
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