Hurricane Harvey has created an oversupply of crude oil temporarily until we can export more and refineries start back up.
U.S. crude supplies dropped 5.8 million barrels for the week ended Aug. 25. Hurricane Harvey caused Texas refineries with an output of 4.1 million barrels per day to be offline on Tuesday.
Hurricane Harvey is estimated to have reduced refining capacity in the area by more than 2 million barrels a day, boosting gasoline prices, but adding pressure on U.S. crude.
We’ll see higher at the pump gasoline prices. Crude oil prices are likely to remain steady, primarily because U.S. oil production has moved more onshore and away from the Gulf of Mexico. Please pray for those affected by Hurricane Harvey.
Oil and gas investors expect refineries will demand less oil as refineries take weeks, maybe longer, to come back on line.
Click here to view our Offerings.