Oil Market Tighter After Hurricane Harvey

9 Sep 2017   Prices

– Crude oil flat price, spreads, refining margins and product spreads all mean-reverted this week as PADD III refineries came back on line to the tune of roughly 2m bpd and the remaining outages developed a more clear return time frame. Refining margins and product spreads still remain elevated but we were struck by the snap-back in crude oil time spreads and flat price while 2-month WTI volatility languished near 26%-29%. In our view, the quick recovery following such traumatic fundamental stress is great evidence of the strength of the sideways oil market narrative. Trading flows of crude oil and products were rerouted from the North Sea to LatAm to Singapore, massive refiner and production outages occurred and WTI bounced back to its pre-Harvey level at $48 in just three days. – EIA data released yesterday has given us a picture of how harshly Harvey impacted crude oil markets […]

Comments are closed.