Hurricanes Add to Problems for Oil Bulls

12 Sep 2017   Prices

The havoc wreaked by major summer storms stands to deepen a global crude-supply glut that has depressed oil prices for more than three years. By paralyzing giant swaths of the southern U.S. ranging from Texas to South Carolina for days at a time, hurricanes Harvey and Irma will dent energy demand from consumers and refiners even as drilling continues and crude in storage is abundant. The effect, analysts say, will be to push millions more barrels of crude oil into oil caverns and floating tankers at a time when storage is already in heavy use. That will undermine efforts by producers such as the Organization of the Petroleum Exporting Countries to “rebalance” the market by cutting output. U.S. crude prices haven’t exceeded $50 for more than a trading day since May, and […]

Comments are closed.