US crude rises on returning refineries; gasoline slumps to pre-Harvey levels

Reuters SINGAPORE | Updated on January 10, 2018 Published on September 05, 2017


US oil prices rose on Tuesday as the gradual restart of refineries in the Gulf of Mexico that were shut by Hurricane Harvey raised demand for crude, their main feedstock.

The return of many US refineries also ended a spike in gasoline prices, as initial fears of a serious supply crunch faded.

US West Texas Intermediate (WTI) crude futures were at $47.55 barrel at 0656 GMT, up 26 cents, or 0.55 per cent, from their last settlement.

Gasoline futures, by contrast, fell 4 per cent from their last close, to $1.68 per gallon, down from $2.17 a gallon on August 31 and back to the levels last seen before Hurricane Harvey hit the US Gulf coast and its large refining industry.

“Gasoline fell as refineries in Texas began to reopen,” said William O'Loughlin, investment analyst at Rivkin Securities.

Texas had on Monday edged towards recovery from the devastation of Hurricane Harvey as shipping channels, oil pipelines and refineries restarted some operations.

The Department of Energy said that eight US oil refineries with a total of 2.1 million bpd, or 11.4 per cent of the total US refining capacity, were still shut as of Monday afternoon.

Harvey hit the Texan coast late on August 25 and at its peak knocked out almost a quarter of the entire US refining capacity.

In international markets, Brent crude futures dipped 3 cents to $52.31 a barrel as traders were cautious on oil - seen as a riskier asset - and instead preferred gold, an investor safe-haven, following North Korea's most powerful nuclear test to date.

Published on September 05, 2017

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.