How Vulnerable Are Oil Markets To Extreme Weather?

7 Sep 2017   Climate

Refineries were closed, pipelines shut down, tankers held out to sea. The price of fuel shot up as gas stations went dry across the country, while crude slumped with a third of the U.S. refinery capacity shut in. A week later, a recovery is evident and most of the shuttered facilities in Corpus Christi and elsewhere are slowly coming back on line. But the impact of Harvey will likely be felt for weeks . Gas prices, according to EIA data , remain high in PADD 1 and PADD 3 (East Coast and Gulf Coast). The massive Motiva refinery has resumed partial production, and Goldman Sachs estimates that half of affected capacity will be back-online. But that leaves 1.4 million bpd that could remain off-line through mid-September, depressing prices. The actual damage to facilities, according to a report from the New Orleans-based Times Picayune, has been relatively minor . Operations […]

Comments are closed.