• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 8 mins New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 4 hours ..
  • 4 hours Summit: Kim, Putin To Meet Thursday in Russia’s Far East
  • 14 mins Deep Analysis: How China Is Replacing America As Asia’s Military Titan
  • 12 hours Don't Climb Onto the $80+ Oil Price Greed Roller Coaster, Please.
  • 4 hours Iran Sabre Rattles Over the Straights of Hormuz
  • 20 hours Populist Surge Coming in Europe's May Election
  • 2 hours China To Promote Using Wind Energy To Power Heating
  • 3 hours Nothing Better than Li-Ion on the Horizon
  • 1 day Liberal Heads Explode as U.S. Senate Confirms Oil Lobbyist David Bernhardt as Interior Secretary
  • 6 hours "Undeniable" Shale Slowdown?
  • 24 mins Countries with the most oil and where they're selling it
Alt Text

Oil Climbs Higher As U.S. Looks To End Iran Sanction Waivers

The U.S. administration is preparing…

Alt Text

Oil Hits 2019 High On Iran Sanctions

Trump’s decision to not extend…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Goldman: Harvey, Irma Cause 900,000 Bpd Drop In Demand

In the wake of the hurricanes Harvey and Irma, oil demand is expected to drop by some 900,000 bpd this month, Goldman Sachs said on Monday.  

“Irma will have a negative impact on oil demand but not on oil production or processing,” Goldman analysts said in a note, as carried by Reuters.

“Harvey’s negative impact on demand will remain larger, however, given the large concentration of energy-intensive petrochemical activity in its path,” the bank said.

According to Goldman’s estimates, the combined effects of production disruption and demand drop from hurricanes Harvey and Irma alone will lift global oil inventories by 600,000 bpd in September.

For next month, estimates are that the hurricanes will lower oil demand by some 300,000 bpd, according to Goldman Sachs.

Gasoline demand will suffer the most from the storms, adding to the expected 150,000-bpd drop this month due to seasonal factors, Goldman said.

Harvey hit Texas and Louisiana two weeks ago, and led to more than one-fifth of the U.S. refining capacity to shut down. Refineries are restarting in Texas and as of 02:00 PM EDT on Sunday, five refineries in the Gulf Coast region were still shut down, with a combined refining capacity of 1,069,300 bpd, equal to 11 percent of total Gulf Coast refining capacity and 5.8 percent of total U.S. refining capacity, according to the DOE.

Irma made a landfall in Florida on Sunday, and is barreling through the state to the northwest. Although it has weakened to a tropical storm, Irma is still producing some wind gusts to near-hurricane force, the National Hurricane Center said at 8:00am EDT on Monday.

Last week, Goldman Sachs said that reconstruction in Hurricane Harvey’s aftermath was expected to be ultimately positive for U.S. oil demand in a few months, as fuel consumption is expected to increase as people rebuild homes. Related: The U.S. Oil Patch Has A Serious Cybersecurity Problem

However, Goldman said that its prediction for increased fuel demand could be upset if Hurricane Irma were to make landfall in Florida, where it would not be felt so much on the sparse oil infrastructure than on fuel demand.   

Irma did make a landfall in Florida and is expected to lead to lower demand in the coming weeks.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Just a Poor White Boy on September 11 2017 said:
    I am confused? There are hundreds of thousands of people loaded in vehicles heading into town from around the country and those fleeing. add in the fuel needed to power all the heavy equipment, generators and other equipment involved in the clean-up.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News