Oil Firms as U.S. Gulf Refineries Restart, Dollar Softens

Brent oil prices firmed on Thursday, hovering near 3-1/2-month highs as U.S. refiners restarting after Tropical Storm Harvey increased their crude processing and the U.S. dollar declined.

Brent crude futures LCOc1 were up 28 cents at $54.48 a barrel by 1143 GMT, close to their highest since May 25.

U.S. West Texas Intermediate (WTI) crude futures CLc1 eased by 11 cents to $49.05 a barrel, near a four-week high.

U.S. Gulf Coast facilities were slowly recovering from the devastating effects of Harvey, which hammered Louisiana and Texas almost two weeks ago, shutting key infrastructure in the heart of the U.S. oil and natural gas industry.

As of Wednesday, about 3.8 million barrels of daily refining capacity, or 20 percent of the U.S. total, was shut in, though a number of refineries and petroleum-handling ports were restarting.

Prices also received a boost from a weakening U.S. dollar. Because oil is priced in the U.S. currency, a lower dollar makes it less expensive for foreign buyers.

The dollar index .DXY was down 0.45 percent at 91.878.

At the same time, prices were weighed down by rising Libyan production and by fears that Hurricane Irma in the Caribbean could interrupt crude shipments in and out of the United States.

Irma hit Caribbean islands overnight with wind speeds up to 185 miles per hour (295 km/h) and was heading for Florida, where fuel shortages were reported as retailers struggled to keep up with demand from customers filling tanks ahead of the storm’s landfall, expected this weekend.

Another Atlantic storm, Jose, is following on Irma’s heels and has been upgraded to hurricane strength by the U.S. National Hurricane Center. Yet another hurricane, Katia, is developing in the Gulf of Mexico.

read more/source: https://www.reuters.com/article/us-global-oil/oil-firms-as-u-s-gulf-refineries-restart-dollar-softens-idUSKCN1BI069

Related Posts

Saudi Retreat From U.S. Oil Market Cuts Exports to 30-Year Low

For a generation, the huge, whitewashed storage tanks at America’s largest oil refinery in Port Arthur, Texas, have stored almost nothing but Saudi crude. The plant is owned by Saudi Arabia’s state-run oil company, Aramco, and since it first bought a stake in 1988, the Motiva refinery guaranteed the kingdom a strategic foothold in the world’s largest energy market. The tankers carrying millions of barrels a month of Arab Light crude from Saudi export terminals to Port Arthur were testament to the strength of the energy and political ties binding Riyadh and Washington. All of a sudden, there are very few Saudi ships arriving in Texas. Since July, Aramco has constricted supply, attempting to drain the crude storage tanks at Motiva -- and many others across America -- part of a plan to lift oil prices, even at the cost of sacrificing its once prized U.S. market. Click Read More below for additional information.

Crude Oil Prices Indecisive after 5% Weekly Rally; Brent Holds Above $60

Oil started the week off with mixed readings after last week’s nearly 5% rise as investor sentiment in black gold continued to be buoyed by hopes of extension to the OPEC-led deal to curb production. U.S. crude showed cautious trade around the unchanged mark Monday with the benchmark unable to hold the $54 mark, though the London barrel managed to extend gains. The U.S. West Texas Intermediate crude December contract slipped 2 cents, or 0.04%, to $53.88 a barrel by 5:12AM ET (9:12GMT). Click Read More below for additional information.

Oil Heads for Third Weekly Gain as OPEC Says Market Is Improving

Oil has advanced this month on forecasts for rising crude demand and as U.S. Gulf Coast plants recover from Hurricane Harvey, which halted almost a quarter of the nation’s refining capacity. Nine months into the OPEC-led supply agreement, implementation of the pledged production cuts remains high. Nigeria, which is currently exempt from making cuts, reiterated that it would accept a cap once output stabilizes around 1.8 million barrels a day. “Today’s meeting of the Joint Ministerial Monitoring Committee is lending buoyancy,” Commerzbank said in a note. “Although no binding promises to extend or expand the agreement can be expected, Nigeria – which like Libya had not signed up to the production cuts – is at least showing a willingness to come on board.” Click Read More below for more of the story.
Back To Top
×Close search
Search