US crude futures rise as industry recovers from Harvey

05 September 2017 20:36 Source:ICIS News

US 2018 budget proposes to sell crude oil reserves, lease drilling in arcticHOUSTON (ICIS)--NYMEX WTI crude futures for October delivery settled at $48.66/bbl, up $1.37 on Tuesday as the industry’s recovery from Hurricane Harvey gains momentum and values re-align.

Harvey slammed into Texas on 25 August as a category 4 hurricane, the most powerful storm to hit the state in over 50 years, shutting down a good portion of the energy infrastructure as it moved along the Gulf Coast.

The initial drop in crude oil consumption sent oil prices sharply lower, while gasoline and other refined products rallied in response to concerns regarding a shortage of fuels.

Several refineries have been restarting gradually, raising the demand for crude oil and the Department of Energy provided over five million barrels of crude oil from the Strategic Petroleum Reserve (SPR).

Pipelines, ports and offshore oil production are returning to service, easing concerns of a supply crunch.

The industry is now keeping an eye on powerful Hurricane Irma in the Atlantic, moving towards the Caribbean and southern United States.

October West Texas Intermediate (WTI), the US benchmark, established an intra-day high of $48.98/bbl, up $1.69 before retreating

ICE Brent for November delivery topped out at $53.66/bbl before settling at $53.38/bbl, up $1.04.