By September 1, 2017 0 Comments Read More →

Oil price, Faroe Petroleum, Premier Oil, Chariot, Empyrean Energy And finally…

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Hurricane Harvey has wreaked havoc in Texas over the weekend, production was halted both offshore and at onshore shale operations but the flooding has probably impacted the refineries more.

On Friday the crude price rallied as production fears were highest and the rig count showed a drop with the likelihood of more cuts to come. However yesterday crude fell and product markets rose significantly as Shell, Exxon and Motiva amongst others closed refining capacity, with Harvey still around and headed back into the GoM and then possibly back onshore, it may get worse before it gets better. With refining capacity down by as much as 3m b/d and exports halted it may be an ironic side effect that local crude builds (depending on how long onshore shale production is shut in for)  and gasoline and distillates will get shorter.

Whatever the makeup, inventories will be harder to read in the next few weeks. Finally a number of pipelines have been closed in for both crude and product so distribution problems will add to the mix…

 

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