• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 11 hours China wields coronavirus to nationalize American-owned carmaker
  • 1 day Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 11 hours Open letter from Politico about US-russian relations
  • 16 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 1 day China's impending economic meltdown
  • 9 hours US will pay for companies to bring supply chains home from China: Kudlow - COVID-19 has highlighted the problem of relying too heavily on one country for production
  • 2 days Why Oil could hit $100
  • 2 days Pompeo upsets China; oil & gas prices to fall
  • 2 days The World is Facing a Solar Panel Waste Problem
  • 1 day The Truth about Chinese and Indian Engineering
  • 17 hours Liquid Air Battery
  • 17 hours What the heroin industry can teach us about solar power (BBC)
  • 1 day Rational analysis of CV19 from Harvard Medical School
  • 2 days Brent above $45. Holding breath for $50??
Why Oil Remains Stuck At $40

Why Oil Remains Stuck At $40

Oil prices posted gains once…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Premium Content

Oil Prices Set To Rise as Supply-Demand Gap Closes Up

Oil prices are poised to climb over the coming weeks as supply and demand approach parity, according to analysts who spoke to CNBC as the remnants of Hurricane Harvey continues to ravage Houston, the energy capital of the United States.

A rise in oil demand for 2017 made large strides in closing the gap between available crude and the number of willing buyers, sources said.

"[Oil prices] should be going up because inventories have been drawing at a phenomenal pace over the past few weeks and months," Amrita Sen of Energy Aspects said.

Both West Texas Intermediate and Brent barrel prices traded down on Tuesday as Tropical Storm Harvey continues to pound the U.S. Gulf coast. The spread between the two benchmarks grew to over $5 – the widest in over two years – not completely due to the inclement weather in Texas.

"Harvey has widened the Brent-WTI spread to almost $6, but North Sea maintenance, new disruptions, and higher U.S. output were already driving the spread wider," a note from Barclays said.

Oil refiners have shut down around 1 million bpd of refining capacity in Texas, Bloomberg reported on Friday, just as the storm was getting ready to hit the Gulf coast. 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. Related: China Creates World’s Biggest Power Group With $271B In Assets

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

“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.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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