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Crude dips, gasoline ascends as markets digest Hurricane Harvey impact
On Monday, crude prices tumbled, while gasoline futures inched up to their highest value since July 2015. It’s because energy markets processed the overall impact of Hurricane Harvey on the American Gulf Coast.
Harvey emerged over the weekend as perhaps the most powerful hurricane to affect Texas in more than 50 years, murdering at least two people, generating large-scale flooding. Another outcome includes the closure of Houston port and also several refineries.
On Monday, the US National Hurricane Center reported that Harvey was drifting away from the coast although it was supposed to head close to the shore through Tuesday. Additionally, floods would spread from Texas, making their way eastward to Louisiana.
Texas happens to be home to approximately 5.6 million barrels of refining capacity per day, while Louisiana boasts up to 3.3 million barrels. More than 2 million barrels a day of refining capacity were assessed to be offline due to the storm.
October delivery West Texas Intermediate crude futures hit $47.37 a barrel, losing 1%. Additionally, October delivery Brent futures went down 12 cents being worth $51.86 a barrel.
The market has started the week with a mixed sentiment…
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.