Oil Inventories Are On The Rise Again (USO)

Oil Inventories Are On The Rise Again (USO)

Analysts said oil prices fell as a result of low refining activity following Harvey, which sharply reduced demand for crude oil.

Futures were little changed in NY, up 3.7% for the week.

Oil prices fell on Friday as Hurricane Irma drove towards USA state of Florida.

Its predecessor, Harvey which hit Texas on August 25, shut a quarter of USA refining capacity, sharply reducing demand for crude that sent prices slumping.

That US crude oil inventories would increase in the wake of Hurricane Harvey was largely anticipated, with some saying as much as 40-60 million barrels could be added to inventory while shuttered refineries struggle to come back online. November Brent crude, the global benchmark, lost 44 cents, or 0.8%, to $54.05 a barrel on ICE Futures Europe, with prices up around 2.5% for the week.

Meanwhile, rising USA inventories also weighed on the market.

But as the refinery sector gradually recovers, so is its crude processing.

So far, it has shut down 11.2 percent of U.S. refining capacity (about one-third of all USA refining capacity is in Texas' Gulf Coast) and roughly 25 percent of United States oil production from the Gulf of Mexico (accounting for about 20 percent of U.S. crude production).

Sheriff Judd: Sex offenders, those with warrants not welcome at hurricane shelters
It noted that many warrants involved only unpaid parking tickets. "We don't arrest people people for simple traffic offenses". People with active warrants in one Florida county may want to reconsider heading to a shelter during Hurricane Irma .

Focus was shifting to three other hurricanes that are now tearing through the Caribbean and Gulf of Mexico.

Domestic US oil production in the lower 48 states was also impacted, shrinking by 783,000 barrels to 8.29m.

ANZ bank was quoted by the news agency as saying: "With another hurricane threatening to hit the USA coast, traders still remain cautious".

It will take weeks for the US petroleum industry to return to full capacity, analysts report.

Hurricane Irma, which has become one of the biggest storms ever measured - picking up the Twitter hashtag #irmageddon - early on Friday was over the Dominican Republic and Haiti, heading for Cuba and the Bahamas.

Another Atlantic storm, Jose, is following on Irma's heels and is expected to gain in strength and intensify into a major hurricane by Friday, according to the U.S. National Hurricane Center.

Investors and analysts were waiting to see Hurricane Irma's impact on (http://www.marketwatch.com/story/hurricane-irma-downgraded-to-category-4-but-remains-extremely-dangerous-on-its-path-to-florida-2017-09-08) oil demand and potential disruptions to energy transportation in the Gulf Coast in the coming days.

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