A hurricane in the heart of the U.S. energy industry is expected to upend years of U.S. excess oil capacity and low prices, with the impact expected to reverberate globally and affect energy markets for weeks.
Harvey hit the Texas shore as a fierce Category 4 hurricane, causing massive flooding that knocked out 11.2 percent of U.S. refining capacity, a quarter of oil production from the U.S. Gulf of Mexico, and closed ports all along the Texas coast.
Gasoline futures jumped as much as 7 percent to their highest level in more than two years in early Monday trading in Asia as traders took stock of the storm’s impact.
The outages will limit the availability of U.S. crude, gasoline and other refined products for global consumers and further push up prices, analysts said.
Damage assessments could take days to weeks to complete, and the storm continues to drop near-biblical amounts of rain as it lingers west of Houston, home to oil, gas, pipeline and chemical plants. Read More…