Oil Steady While Gasoline Spikes as Hurricane Harvey Approaches

Oil trimmed a fourth weekly decline as traders braced for impact of Hurricane Harvey on the U.S. refining hub in the Gulf of Mexico. Gasoline futures surged to the highest in four months.Front-month crude futures rose 0.5 percent in New York, paring Thursday’s 2 percent decline. Gasoline gained as much as 4.6 percent. While some oil and gas production has shut in the Gulf, the storm is bearing down on an area in the state of Texas that’s home to much of the U.S.’s refining capacity. If Harvey, currently a Category 2, makes the forecast landfall as a Category 3, it will be the strongest storm to hit since Wilma in 2005.

Oil in New York has lost almost 5 percent this month as investors weigh rising global output against supply cuts by members of the Organization of Petroleum Exporting Countries and its allies. While Harvey has curtailed some U.S. oil output, the greater impact could be on crude demand, with about 1 million barrels a day of refining capacity already shut down.

Source: Oil Trims Weekly Drop as Storm Heads for Texas; Gasoline Surges – Bloomberg

Will Draghi or Yellen Deliver a Summer Bombshell?

Hurricane Harvey Hits Oil as Gold Relaxes in Jackson Hole

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.