MTECHTIPS:-Crude oil drops in Asia with API estimates ahead, Irma

MTECHTIPS:-Crude oil drops in Asia with API estimates ahead, Irma tracked

MTECHTIPS- Crude oil prices dropped in Asia on Wednesday with a first weekly data look at the impact of Hurricane Harvey ahead with industry estimates from the American Petroleum Institute and caution in the market as Hurricane Irma heads toward Florida. On the New York Mercantile Exchange crude futures for October delivery fell 0.32% to $48.55 a barrel, while on London’s Intercontinental Exchange, Brent dipped 0.49% to $53.12 a barrel. Overnight, crude futures settled higher on Tuesday, as Gulf Coast refineries began restarting operations, following the disruptions caused by Hurricane Harvey last week. Oil prices continued to pare losses sustained last week, after oil refineries, pipelines and transportation routes across Texas and Louisiana began restarting operation, improving U.S. refinery capacity, after flooding due to Hurricane Harvey shut down nearly a quarter of refinery capacity last week. About 2 million barrels a day, or 11% of U.S. refining capacity, remained offline on Monday, according to Commerzbank (DE:CBKG). The largest U.S. refineries at Port Arthur, however, are not expected to return to normal capacity for at least four weeks, according to Andy Lipow, president of Lipow Oil Associates. Crude oil’s strong start to the week could come under pressure, however, as analysts expect the Energy Information Agency’s report on crude inventories due Thursday to show an uptick in crude supplies following the lower demand from refiners last week
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