News Worms
News Worms

Oil set for first weekly gain since July as United States refiners return

Oil set for first weekly gain since July as United States refiners return

"The data scrambles the recent trend of declining crude inventories and further rises are likely in the weeks ahead", said John Kilduff, partner at energy hedge fund Again Capital LLC in NY.

The amount of oil held in USA storage tanks rose by 4.6 million barrels last week after Hurricane Harvey added to the glut that has kept crude prices low for more than three years.

Light, sweet crude for October delivery rose 46 cents, or 0.95%, to $49.12 a barrel on the New York Mercantile Exchange.

USA crude oil prices rose and gasoline prices fell at the start of the holiday-shortened week as the gradual restart of refineries in the Gulf of Mexico that were shut by Hurricane Harvey raised demand for crude and eased fears of a serious supply crunch.

That US crude oil inventories would increase in the wake of Hurricane Harvey was largely anticipated, with some saying as much as 40-60 million barrels could be added to inventory while shuttered refineries struggle to come back online. Brent crude was down 71 cents, or 1.3 percent, to $53.78 a barrel after reaching its highest level since April at $54.87.

But as the refinery sector gradually recovers, so is its crude processing.

As of Wednesday, about 3.8 million barrels of daily refining capacity, or about 20 percent, was shut in.

Gasoline refineries were interrupted along the Texas coast, denting demand for crude oil.

In the week after Harvey hit, US crude exports dropped 749,000 barrels per day to 153,000 bpd.

Focus was shifting to three other hurricanes that are now tearing through the Caribbean and Gulf of Mexico. This production has played a major role in keeping global oil prices low.

Investors and analysts were waiting to see Hurricane Irma's impact on ( oil demand and potential disruptions to energy transportation in the Gulf Coast in the coming days.

Irma barreled into Caribbean islands overnight with wind speeds up to 185 miles per hour (295 kph) and was heading for Florida.

"Demand may continue to be distorted as multiple hurricanes make their way across the Caribbean", said Jeffrey Halley, senior market analyst at futures brokerage OANDA.


editors' picks

September 10, 2017
Boris Johnson says he is 'rock solid confident' of European Union deal
The UK wants to avoid any physical border infrastructure in either the UK or Ireland, for any objective (including customs or agri-food checks).

September 10, 2017
Rafael Nadal Storms Into US Open Final
Nadal fired 45 winners as Del Potro ran out of steam. "I don't feel I [made] many mistakes after that first set", Nadal reflected. Federer is a five-time champion in NY , winning the title five consecutive times from 2004-08.

September 10, 2017
Arsene Wenger: Scrap Financial Fair Play rules that 'cannot be respected'
Arsenal's chief transfer negotiator Dick Law will be stepping down at the end of the month, handing a huge blow to Arsene Wenger . Wenger chose not to pick Jack Wilshere against the club he spent the majority of last season at before breaking his leg.

September 10, 2017
United States formally requests United Nations vote Monday on North Korea
Recent missile tests point to advancements by North Korea in developing a missile that could reach the continental US. Britain has given early backing to the measure.

September 10, 2017
Report Questions When Joe Paterno Learned About Sex Abuse Allegations
Paterno's family sued the NCAA in 2013 over its investigation into how Paterno and other administrators handled abuse allegations. According to the report, two men claimed they reported their abuse at Sandusky's hands directly to Paterno in the 1970s.

September 08, 2017
Spotify, Hulu Team Up To Help Students
If you want to see if you're eligible, you can visit Spotify Premium for Students' webpage. Normally, a Hulu membership would run subscribers $7.99 a month.

September 08, 2017
What to do if Hurricane Irma impacts your vacation
Jose and Katia strengthened Wednesday afternoon, bringing the number of hurricanes churning in the Atlantic basin to three. Right now, the path of Jose is expected to stay north and east of Irma's path as the storm approaches the United States.

September 08, 2017
Photos of wildfires ravaging the Western US
But the temperatures are expected to warm up over the rest of the week and fire officials say the fire season is far from over. Overnight the fire sparked a fire across the river in Washington and prompted mandatory evacuations of multiple communities.

September 08, 2017
Isaiah Thomas seeks new agent to handle 2018 free agency
It's been what I've had to fight through my whole career and I'm going to continue to fight until my career is over. Cavaliers general manager Kobe Altman didn't do anything to dispel those doomsday reports Thursday.

September 08, 2017
Who've you got? Baker Mayfield or JK Dobbins in Columbus?
Ohio State is 6-1 ATS in its last seven games against Big 12 opponents according to the OddsShark College Football Database . In earning his trip to NY previous year , Mayfield became the 59 player to finish in the top five of the Heisman race twice.