Storm Alert – Impact Update August 21, 2023

Tropical Storm Hilary made landfall in Mexico over the weekend, progressing northward to become just the 4th tropical storm in recorded history ever to hit California. At the same time, parts of southern California were hit by a 5.1-scale earthquake, a difficult combination. Despite the natural disasters over the past few days, California’s fuel markets are resilient, with little damage reported for fuel terminals and refineries. Although some 50,000 power outages were reported, none appeared to directly impact fueling infrastructure. Fuel carriers are back in business, catching up from loads missed while the storm passed.

Fuel demand is expected to be down on Monday and Tuesday due to the amount of rainfall in both Southern and Northern CA. Although fueling infrastructure was undamaged, low-lying streets next to rivers and some highway underpasses collected several feet of water that makes them potentially dangerous to pass through. The Inland desert communities where the ground is primarily desert and rock are under threat of flash flooding and landslides. Cliff-side beach communities will also be areas to avoid as they have been prone to mudslides in the past.

Looking eastward, several cyclones are developing in the Atlantic region. As of this morning, there were three named storms in the region, as well as “Tropical Cyclone Nine” which is in the Gulf of Mexico and could strengthen to a tropical storm by the time it makes landfall in Mexico or southern Texas. Of the other storms, Franklin is expected to move northward away from the US, Emily is in the process of dissipating, and Tropical Storm Gert is expected to dissolve by tomorrow. The potential storm off the coast of Africa, currently called Invest92, should strengthen in the coming week, though its ultimate path is unclear.