US Oil Falls 2% As Refiners Brace For Hurricane Harvey
NEW YORK, Aug 24 (Reuters) - U.S. crude prices fell 2 percent on Thursday as Hurricane Harvey, forecast to come ashore as the strongest storm to hit the U.S. mainland in 12 years, threatened oil operations along the energy hub on the U.S. Gulf Coast.
U.S gasoline futures, however, jumped 2.8 percent and gasoline cash prices in the Gulf Coast rose to the highest levels in almost a year on fears of the hurricane and flooding damaging refineries.
The U.S. National Hurricane Center said that Harvey was rapidly intensifying and expected to make landfall Friday night or early Saturday on the Texas coast, whilst warning of a storm surge or the danger of life-threatening flooding.
Harvey is forecast to come ashore as a Category 3 hurricane, the NHC said, with winds of up to 129 miles (208 km) per hour. Hurricane Wilma, which struck Florida in 2005, was the last Category 3 hurricane to make landfall in the United States.
"There are worries about the effect of Harvey," said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut. "Refineries might go down because of flooding."
Around 10 percent of the Gulf Coast region's approximately 9.75 million barrels per day of refining capacity was shut in, according to a Reuters estimate.
Two refineries in Corpus Christi, Texas - Flint Hills Resources' 296,470 barrels per day plant and Citgo Petroleum's 157,000 bpd plant - were shutting down operations in preparation of the storm.
Exports of oil and condensates would also be affected as NuStar Energy and Magellan Midstream Partners were also shutting down their Corpus Christi terminals ahead of Harvey.
U.S. crude futures settled 98 cents lower at $47.43 a barrel and Brent crude ended down 53 cents a barrel, or 1 percent, at $52.04.
Storm preparations, however, also shut in crude production, which was supportive.
Almost 10 percent, or the equivalent of 167,231 bpd, of current oil production in the U.S. of Mexico has been shut in, the Bureau of Safety and Environmental Enforcement said.
Royal Dutch Shell, Anadarko Petroleum and Exxon Mobil have all taken steps to curb some oil and gas output at platforms in the Gulf.
Onshore, Statoil said it was evacuating staff from the Eagle Ford shale region and will close wells on a case-by-case basis depending on flooding risk. [nL2N1LA190
ConocoPhillips also said it was suspending drilling the Eagle Ford sand idling five rigs ahead of the hurricane.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea