Crude dips, gaso­line spikes as floods knock out al­most a quar­ter of US re­finer­ies

Business Daily (Kenya) - - MONEY & MARKETS GLOBAL -

Oil prices dipped yes­ter­day but gaso­line spiked to its high­est since mid-2015 as flood­ing in the wake of Hur­ri­cane Har­vey knocked out al­most a quar­ter of US re­finer­ies, crimp­ing de­mand for crude but rais­ing fears of fuel short­ages.

Har­vey, which has been down­graded to a storm, has caused mas­sive floods across coastal Texas, in­clud­ing in Hous­ton. It is now mov­ing into Louisiana, where more floods are ex­pected.

“Cat­a­strophic and life-

threat­en­ing flood­ing con­tin­ues in south­east­ern Texas and por­tions of south­west­ern Louisiana,” the Na­tional Hur­ri­cane Cen­tre said in its lat­est note.

US West Texas In­ter­me­di­ate crude fu­tures were at $46.35 per bar­rel at 0644 GMT, down nine cents from their last close. Brent crude fu­tures were down six cents, at $51.94 a bar­rel.

In the re­fined prod­uct mar­ket, price move­ments have been more dra­matic.

US gaso­line prices were over three per cent higher at $1.8380 per gal­lon.

Prices ear­lier climbed to the most since July 31, 2015, at $1.842. Diesel fu­tures also jumped, gain­ing 1.2 per cent to $1.6854 a gal­lon and were ear­lier at their high­est since Jan­uary 9 at $1.697. “As of Au­gust 29, we es­ti­mate US re­fin­ing pro­duc­tion off­line was 4.1 mil­lion bar­rels per day; this rep­re­sents 23 per cent of to­tal US re­fin­ing pro­duc­tion,” Gold­man Sachs said in a note to clients.

US gaso­line prices were over three per cent higher at $1.8380 per gal­lon.

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