Oil rose by 3.6% in West Texas in pursuit of Hurricane Harvey hitting the state earlier this month, the biggest intraday gain since 25th of July. The hurricane, which had peak accumulations of 1,318mm, is the wettest tropical cyclone on record in the contiguous United States. Refineries, pipelines, ports and offshore platforms were all forced to shut down as the hurricane intensified.
The hurricane added 50 cents at $49.16 per barrel for the Crude Oil October delivery and Brent rose by 82 cents to settle at $54.20 a barrel. On Tuesday the 6th September, 20% of the U.S. barrels were shut, which correlates to 3.8 million bpd, 4.2 million bpd at the height of the storm. Many of the refineries, pipelines and ports are beginning to restart again, 10 days after they were shut.
Hurricane Irma, which is due to hit the southern tip of Florida before 8am on Saturday the 9th, could potentially curtail fuel shipments to the state as it is largely dependent on waterborne deliveries of gas and diesel. As Irma makes its way towards Florida, it will hit around 250,000 bpd of refining capacity in the Dominican Republic and Cuba.
Sources: Reuters, Bloomberg, Npower, Energy Live News