Oil sees slight recovery after hit from storm Harvey

About a fifth of the Gulf Coast's oil output remains shut down following Hurricane HarveyAbout a fifth of the Gulf Coast's oil output remains shut down following Hurricane Harvey
About a fifth of the Gulf Coast’s oil output remains shut down following Hurricane Harvey (AFP Photo/MARK RALSTON)

Singapore (AFP) – Crude prices recovered slightly in in Asian trade Tuesday a day after heavy falls caused by the impact of monster storm Harvey on a key US oil-producing region.

Harvey battered into Texas on Friday as a Category Four hurricane, tearing down homes and businesses on the Gulf Coast, and triggering massive floods.

The storm caused the closure of many oil platforms in the Gulf, and about a fifth of the region’s oil output remained shut down, according to US authorities.

With markets Monday fearing demand for crude could be hit, US benchmark West Texas Intermediate (WTI) sank $1.30, while Brent finished 52 cents lower.

But in early afternoon trade in Asia Tuesday, WTI edged up 22 cents to $46.79 while Brent added 17 cents to $52.06.

But analysts said prices are expected to remain subdued as the shutdown of oil refineries would lead to higher crude stockpiles.

“Given that a significant portion of refining capacity in the US Gulf Coast is shut, we are likely to witness a situation of high domestic crude stockpiles, which will put pressure on prices,” Amit Musaddy of energy consultancy Trifecta told AFP.

A total of 105 of the 737 offshore oil rigs in the Gulf of Mexico were evacuated before the storm made landfall on Friday, according to the US Bureau of Safety and Environmental Enforcement (BSEE). By Monday, 98 remained closed.

The Gulf of Mexico alone accounts for 20 percent of US production.


🕐 Top News in the Last Hour By Importance Score

# Title 📊 i-Score
1 The African country loved by Brits that's set for a tourism boom 🔴 70 / 100
2 Merz sees non-EU countries as an option for asylum procedures 🔴 65 / 100
3 New Pope Leo XIV issues bombshell controversial statement on 'what marriage is' 🔴 65 / 100
4 How Natalia Bryant Honored Kobe Bryant at College Graduation 🔵 45 / 100
5 Scottie Scheffler bursts clear of US PGA third-round field at Quail Hollow 🔵 45 / 100
6 Emilia Romagna Grand Prix starting grid changed as driver hit with rare penalty 🔵 42 / 100
7 In comeback, Journalism wins 150th Preakness Stakes 🔵 35 / 100
8 Vinegar never removes kettle limescale as fast as 1 natural item that blew cleaner’s mind 🔵 35 / 100
9 Roast potatoes are ‘mouth-watering’ when cooked with 2 unusual ingredients 🔵 30 / 100
10 Eurovision leaderboard in full as UK finish in 19th place 🔵 25 / 100

View More Top News ➡️