MTECHTIPS;-Crude oil poised to gain in Asia as Harvey hits U.S.
MTECHTIPS;-Crude oil poised to gain in Asia as Harvey hits U.S. Gulf hard
MTECHTIPS-Crude oil prices were poised to gain in Asia on Monday in the aftermath of the massive hit taken to U.S. Gulf Coast output from and follow-on flooding inland in Texas. The U.S. West Texas Intermediate crude October contract was last quoted up 0.10% to to $47.92 a barrel. Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery was last quoted at $51.98 a barrel. Hurricane Harvey has knocked offline ~22% of Gulf of Mexico oil production, or nearly 380 M bbl/pay out of 1.75 M, and ~26% of natural gas output, or 828 M cf/day out of 3.22 T, according to the U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement. In the refining sector, most Texas Gulf Coast refining and shipping is shut or curtailed.Exxon Mobil (NYSE:NYSE:XOM) closed its Bay town refinery at the Houston Ship Channel – the second largest refinery in the U.S., with production capacity of 560 K bbl/day – due to severe flooding Royal Dutch Shell (LON:LON:RDSa) (RDS.A, RDS.B) says its 325 K bbl/day Deer Park refinery and chemical plant complex may be shut for a week, Petrobras (NYSE:PBR) shut its 112 K bbl/day Pasadena plant, and Phillips 66 (NYSE:NYSE:PSX) shut its 247 K bbl/day Weeny refinery. All Corpus Christi refineries already were closed, so the Houston plant closures compound worries about fuel shortages that could develop as rain continues; long-term refinery outages could cause fuel shortages and sharply higher gasoline prices around the U.S. Houston also is the starting point of the massive Colonial Pipeline that takes gasoline, diesel and jet fuel as far north as New York, but operations had not been affected as of this afternoon; Shell is one of Colonial\’s partners
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