Light, sweet crude oil prices on the New York Mercantile Exchange rose modestly but still settled below $48/bbl on Aug. 25 as market participants awaited news on Hurricane Harvey, which pounded Texas later that day and continues to cause massive flooding in Houston.
S&P Global Platts reported 2.2 million b/d of refining capacity was down or being shut as of Aug. 27. Corpus Christi area refineries were shut first as the storm made landfall in the nearby Rockport-Port Aransas area. Houston area refineries also were shut.
After being downgraded to a tropical storm, the slow-moving system was forecast to return offshore and was expected to reach Louisiana where more refining could be affected.
Numerous Houston area refineries were affected. ExxonMobil Corp. closed its 560,500-b/d Baytown refinery on the Houston Ship Channel.
Other closed refineries include Royal Dutch Shell PLC’s 340,000 b/d-refinery in Deer Park, Tex., and Brazil’s Petroleo Brasileiro SA's refinery in Pasadena, Tex.
Analysts said Harvey could affect Saudi Arabian Oil Co.’s refinery in Port Arthur, Tex.
Some offshore oil and gas operators evacuated platforms and rigs. Separately, Eagle Ford shale operators in South Texas also shut in an unknown number of onshore wells in South Texas. Some analysts estimated the Eagle Ford number of wells shut in could reach into the hundreds.
Energy prices
The October light, sweet crude contract on NYMEX rose 44¢ on Aug. 25 to settle at $47.87/bbl, while the November contract added 42¢ to settle at $48.12.
The NYMEX natural gas price for September fell nearly 6¢ to a rounded $2.89/MMbtu. The Henry Hub cash gas price was $2.93/MMbtu, down 3¢.
Heating oil for September edged up less than a penny to remain at a rounded $1.62/gal. Reformulated gasoline stock for oxygenate blending for September also edged up less than 1¢ to remain at a rounded $1.66/gal.
The Brent crude contract for October on London’s ICE gained 37¢ to $52.41/bbl. The November contract added 32¢ to $51.98/bbl. The September gas oil contract was $480 on Aug. 25, down $2.50.
The Organization of Petroleum Exporting Countries' basket of crudes on Aug. 25 was $49.93/bbl, up 17¢.
Contact Paula Dittrick at [email protected].
