Oil rises fol­low­ing Har­vey fall­out

Yorkshire Post - Business - - MARKET REPORT -

OIL PRICES rose on Wed­nes­day as strong global re­fin­ing mar­gins and the re­open­ing of US Gulf Coast re­finer­ies pro­vided a more bullish out­look after sharp drops due to Storm Har­vey.

Brent gained 28 cents to $53.66 a bar­rel. US West Texas In­ter­me­di­ate (WTI) crude fu­tures were up 15 cents at $48.81.

“Hur­ri­cane Har­vey was bear­ish for crude and spec­u­la­tors went mas­sively short WTI but now there is a re­ver­sal to po­si­tions pre-Har­vey. Strong mar­gins are help­ing un­der­pin crude... gasoil is at its high­est point this year,” Olivier Jakob of Petro­ma­trix con­sul­tancy said.

Many re­finer­ies, pipe­lines and ports that were knocked out by Har­vey 10 days ago are restart­ing. As of Tues­day, about 3.8 mil­lion bar­rels per day (bpd) of re­fin­ing ca­pac­ity, or 20 per cent of the US to­tal, was shut. This com­pares with 4.2 mil­lion bpd at the height of the storm.

Fo­cus was also be­ing drawn to the Cat­e­gory 5 storm Hur­ri­cane Irma, which is bar­relling to­wards the Caribbean and Florida and could knock out other re­finer­ies and cause more fuel short­ages.

Around 250,000 bar­rels of daily re­fin­ing ca­pac­ity in the Do­mini­can Repub­lic and Cuba lies in the im­me­di­ate path of Irma.

Fuel stor­age data from the Amer­i­can Pe­tro­leum In­sti­tute is ex­pected to give a bet­ter view of the ex­tent of Har­vey’s im­pact on US fuel in­ven­to­ries.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.