The light, sweet crude oil price for October delivery fell to settle below $46/bbl while gasoline futures jumped for a third consecutive day Aug. 30 in the aftermath of Tropical Storm Harvey’s flooding, prompting multiple refinery closing along the Gulf of Mexico coast.
The New York Mercantile Exchange reformulated gasoline blendstock climbed 10¢ to settle at $1.88/gal. Tropical Storm Harvey moved over East Texas and into southwestern Louisiana, another major US downstream region.
The US Bureau of Safety and Environmental Enforcement reported as of midday Aug. 30 that 18.5% of US gulf oil production, or 323,760 b/d, remained shut, slightly more than the 18.26% reported 24 hr earlier but down from an event peak of about 25%.
BSEE also estimates that 18.98% of US gulf natural gas production, or 611.09 MMcfd, had been halted, slightly down from the 19.1% reported the previous day.
Hurricane Harvey made landfall near Corpus Christi, Tex., on Aug. 25. Corpus-area refineries and port authorities said preparation for resumption of oil and gas operations was under way and expected soon of Aug. 30.
US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, decreased 5.4 million bbl for the week ended Aug. 25 compared with previous week, the US Energy Information Administration said (OGJ Online, Aug. 30, 2017).
At 457.8 million bbl total, crude oil inventories are in the middle of the average range for this time of year, EIA said in its Weekly Petroleum Status Report. That latest statistics account for inventory of US oil and product supplies before Harvey made landfall.
The EIA said US crude oil production for the week ended Aug. 25 increased by 2,000 b/d to 9.53 million b/d. Alaska’s production climbed 14,000 b/d to 460,000 b/d but it was offset by a Lower 48 production decline. Production across the L48 fell by 12,000 b/d to 9.07 million b/d.
Energy prices
The October light, sweet crude contract on NYMEX fell 48¢ on Aug. 30 to settle at $45.96/bbl while the November contract was down 49¢ to settle at $46.51/bbl.
The NYMEX natural gas price for September declined 2¢ to a rounded $2.94/MMbtu. The Henry Hub cash gas price was $2.86/MMbtu, down 2¢.
Heating oil for September rose less than a penny to remain at a rounded $1.67/gal. Reformulated gasoline stock for oxygenate blending for September rose 10¢ to a rounded $1.88/gal.
The Brent crude contract for October on London’s ICE was down $1.14 to $50.86/bbl. The November contract declined 93¢ to $50.73/bbl. The gasoil contract was $495.50/tonne on Aug. 30, up $11.
The Organization of Petroleum Exporting Countries’ basket of crudes on Aug. 30 was $49.11/bbl, down 10¢.
Contact Paula Dittrick at [email protected].
