• 4 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 10 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 13 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 17 mins The 5 Scary New Rules Of Upside-Down Capitalism
  • 3 hours Hydrogen Hurdles in Japan
  • 6 hours Winter Storms Hitting Continental US
  • 7 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 1 day More dumbed down? re Hong Kong Act of Congress
  • 18 hours PennEast Appealing Wacky 3rd Circuit Decision to Supreme Court
  • 21 hours Impeachment S**te
  • 2 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 1 day Petroleum Industry Domain Names
  • 19 hours Contaminated Oil
  • 19 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 1 day U.S. Shale Output may Start Dropping Next Year
  • 16 hours Aramco IPO magic trick
  • 1 day Crazy Stories From Round The World
  • 19 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
Alt Text

OPEC Is Desperate For A Trade War Resolution

OPEC’s Secretary General is desperate…

Alt Text

Has Global Oil Production Really Peaked?

The lack of significant new…

Alt Text

Oil Prices Fall On Bearish EIA Inventory Report

Oil pared gains on Thursday…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Prices Rise As Texas Braces For Hurricane Harvey Landfall

Oil prices rose early on Friday and gasoline futures rallied to a four-month high as Hurricane Harvey makes its way toward Texas and is expected to make landfall at the heart of the Gulf Coast refining industry near Houston later on Friday or early on Saturday.

At 7:51am EDT Friday, WTI was up 0.74 percent at US$47.78 and Brent was up 0.81 percent at US$52.46. The front-month gasoline futures were surging 3.72 percent at US$1.726 and touched a four-month high in intraday trade.

Early on Friday, the National Hurricane Center (NHC) issued a storm surge warning for south Texas, saying that this warning “means there is a danger of life-threatening inundation, from rising water moving inland from the coastline, during the next 36 hours in the indicated locations.”

Oil refiners have shut down around 1 million bpd of refining capacity in Texas, Bloomberg reports, citing company statements and people familiar with the events. Oil refineries in Corpus Christi operated by Citgo Petroleum, Valero Energy Corp, and Flint Hills Resources have also started to shut down ahead of the landfall.

Shell, Exxon, and Anadarko have reduced production in the Gulf of Mexico ahead of the storm.

Based on data from operator reports, it is estimated that as of 11:30 CDT on Thursday, 9.56 percent of the current oil production in the Gulf of Mexico has been shut-in, equal to 167,231 bpd. It is also estimated that 14.66 percent of the natural gas production, or 472 million cubic feet per day in the Gulf of Mexico has been shut-in, the Bureau of Safety and Environmental Enforcement (BSEE) said late on Thursday.

About 17 percent of U.S. crude oil output comes from the Gulf of Mexico, or 1.661 million bpd as of May, according to the Energy Information Administration.  Related: EIA Spreads Optimism With Double Draw

“The biggest impact of this storm will be a significant reduction of crude oil imports into the Texas Gulf Coast,” Andy Lipow at Lipow Oil Associates, a Houston-based consultancy, told the Financial Times, adding that the refinery shutdowns and possible flooding could raise national gasoline prices by 5 to 10 cents a gallon.

The storm damage will dictate if today’s price movements would be sustained, Carsten Fritsch at Commerzbank told FT.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Dan on August 25 2017 said:
    Much worse than priced in. This could destroy the Texas area oil and gas drilling for months on end as nobody will be able to go through the mud and water left behind. Pipelines may float away. Much worse ,rust from saltwater.
  • JeffreyJ. Brown on August 25 2017 said:
    Given the 20 to 30 inch rainfall forecasts, plus the storm surge, we could see some major, and long lasting, damage to refinery infrastructure from flooding.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play