Crude prices continue to decline

Dianna Christensen
August 31, 2017

In addition to shutting oil refineries, about 1.4 million bpd of United States crude production has been disrupted, equivalent to 15 percent of total output, Goldman Sachs said.

The national USA gasoline price on Monday stands at $2.38 per gallon, up more than 5 cents from a week ago.

About 16% of total USA refining capacity, or 3 million barrels per day (bpd), has been lost since Hurricane Harvey descended on Texas on Saturday as the most powerful storm to hit the state in over 50 years, killing at least nine people and causing catastrophic flooding in the heartland of America's petroleum industry.

International Brent crude futures were down 7 cents at $51.82 a barrel, having traded as high as $52.19 and as low as $51.36 earlier in the day.

More than 18 percent of oil production in the Gulf of Mexico was shut down, the U.S. Department of the Interior's Bureau of Safety Environmental Enforcement said.

October West Texas Intermediate crude fell 48 cents, or 1%, to settle at $45.96 a barrel on the New York Mercantile Exchange. But MRs may get more work in Europe to bring gasoline cargoes to the US.

Beware of Turtle: Pet Reptiles Cause Salmonella Outbreak in 13 States
Some people said they had purchased small turtles from a flea market or street vendor, or had received them as a gift. Since 1975, the FDA has banned sales and distribution of turtles with shells smaller than four inches.

Strong Q2 GDP Report Gets Big Ho-Hum From Markets
Corporate profits rose 1.3 percent in the second quarter following a drop of 2.1 percent in the first quarter. The latest figures helped the dollar to build on gains against a basket of currencies in Wednesday trading.

Pope Francis to visit Myanmar, Bangladesh in November
But the United Nations has urged Bangladesh's government to give Rohingya shelter as they face increasing persecution at home. The government used a militant attack on border guards back in October 2016 as a pretext to enforce the blockade on Rakhine.

The storm caused the closure of many oil refineries, which analysts said would lead to bigger crude stockpiles and push down prices.

Some refineries were preparing for restarts, but heavy rains were expected to last through Wednesday, adding to catastrophic flooding. Motiva has already been reducing production at the 603,000 barrel per day (bpd) Port Arthur, Texas, refinery as flood waters continued to inundate the area.

Outside of the immediate impact from Harvey, last week saw another decline in USA exploration and production activity.

However, the assessment does not include the impact of storm Harvey. Yet crude remains in ample supply.

Gasoline rose still higher post-settlement, after sources told Reuters that Motiva was shuttering the largest USA refinery.

"We are thus lowering our Brent oil price estimates to $55 per barrel from $60 per barrel in 4Q17 (and) to $57 per barrel from $64 per barrel in 2018", Jefferies bank said.

Other reports by GlobalViralNews

Discuss This Article