The oil business was bracing for the effect of Hurricane Harvey on Friday as refineries and offshore oil platform on the Gulf of Mexico close down to get ready for the greatest storm to hit the United States in over 10 years.
Refineries that consume up to five million barrels of oil a day are in the storm’s way, which is the reason many have just begun closing down as a precaution. They incorporate big ones worked by Citgo Petroleum, Valero Energy Corp. furthermore, Flint Hills Resources, moving a huge number of barrels of production offline.
Oil costs rose Friday in light of the sudden absence of supply, picking up 44 cents to settle at $47.87.
Less oil coming into refineries would imply that current stocks would need to be taken advantage of to keep them running, which would push costs up a bit.
Gasoline costs could see a comparative surge, yet just in patches.