MTECHTIPS:-Crude prices rebound, gasoline slides as U.S. refineries

MTECHTIPS:-Crude prices rebound, gasoline slides as U.S. refineries restart

MTECHTIPS-Crude oil prices rose and gasoline fell by about 3 percent on Tuesday as the gradual restart of refineries in the U.S. Gulf that were shut by Hurricane Harvey raised demand for crude and eased fears of a fuel supply crunch. Texas was edging towards recovery from the devastation of Harvey that hit its coast late on Aug. 25, as shipping channels, oil pipelines and refineries restarted some operations. At its peak, the hurricane knocked out almost a quarter of all U.S. refining capacity. On Tuesday, sources said Motiva Enterprises could begin restarting the 603,000 barrel per day (bpd) Port Arthur refinery, the nation’s largest, this week. Crude oil infrastructure was also still recovering from the storm. Mexico’s Pemex said on Tuesday that the storm forced the cancellation of several crude oil export shipments. “This is kind of a boomerang,” said John Kilduff, partner at energy hedge fund Again Capital, noting that just after the storm, the fear was gasoline shortages. “Today, there’s a bit of a worry in the short term that there could be an issue around crude supply.” U.S. gasoline futures (RBc 1) dropped 3.15 percent from their last close to $1.69 per gallon, down from $2.17 on Aug. 31 and back to levels last seen before Harvey hit the U.S. Gulf Coast and its large refining industry
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