Oil production shutting down due to hurricane Harvey

[MindWars]

Oil production shutting down due to Hurricane Harvey

Forty-five percent of total U.S. petroleum refining capacity is located along the Gulf Coast. According to reports, about one-third of that is in the path of Hurricane Harvey.



Expect the cost of oil to go up.

 

[ZZ PUPPS]

Oil production shutting down due to Hurricane Harvey

View attachment 145991
Forty-five percent of total U.S. petroleum refining capacity is located along the Gulf Coast. According to reports, about one-third of that is in the path of Hurricane Harvey.



Expect the cost of oil to go up.

That would be gas, not oil. Oil will build due to idled refining capacity.

 

[RodISHI]

Those storms are pretty short lived so if prices rise too much in the US its nothing more than bs a market ploy.

 

[ZZ PUPPS]

Those storms are pretty short lived so if prices rise too much in the US its nothing more than bs a market ploy.

What will probably happen is localized spot shortages of gas. Overall, US prices will rise 2 to 5 cents per gallon depending upon refinery curtailment severity.

 

[MindWars]

Oil production shutting down due to Hurricane Harvey

View attachment 145991
Forty-five percent of total U.S. petroleum refining capacity is located along the Gulf Coast. According to reports, about one-third of that is in the path of Hurricane Harvey.



Expect the cost of oil to go up.

That would be gas, not oil. Oil will build due to idled refining capacity.

Well yeah, but seems when oil gets it they dream up a reason to hit the gas too. That's what I was kind of meaning .

 

[EvilCat Breath]

Nope. There will be no rise in prices. A one or two day shutdown doesn't amount to a long enough period of time to affect anything.

 

[ZZ PUPPS]

A lot of GOM capacity is designed for heavy imported crude, which we don't produce much of anymore. Oil is a world commodity, while gas is pretty much a domestic product. Outside of a small part of south Texas oil production, the rest will keep pumping away and building oil inventory until the refineries are back up and running to consume it. Hence, oil will be unchanged to down slightly while gasoline will rise modestly.