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Oil tumbles, gasoline spikes because floods knock out one-fifth of American refineries
On Wednesday, crude prices went down, although gasoline jumped to their maximums since July 2015 because flooding as well as storm damage in the wake of Hurricane Harvey knocked out one-fifth of American refineries, confounding demand for oil, though driving fears of fuel shortages.
Hurricane Harvey that has been already downgraded to an ordinary storm, has generated huge floods across coastal Texas, and also in Houston. The disaster is currently heading for Louisiana, exactly where more floods are supposed to take place.
American West Texas Intermediate crude futures hit $46.31 a barrel, losing 13 cents from their previous close. As for Brent crude futures, they tumbled 21 cents being worth $51.79 a barrel.
American gasoline prices leapt over 3% hitting $1.8396 per gallon. Earlier prices demonstrated the most impressive reading since July 31, 2015, reaching $1.842.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.