Oil prices today went down as past hurricane’s detrimental impact on demand delays refinery works start considering Hurricane Harvey. Global gauge Brent crude dropped $0.35, and now costs $53.49 for a barrel. West Texas Intermediate crude slipped $0.30, reaching $47.77 for a barrel.
Though the biggest American refinery along with a lot of others were coming back to work over 2 weeks following Hurricane Harvey that swept through the south of the U.S., Irma’s effect was more harmful for the price of oil. Irma broke into the south-eastern state of Florida last Sunday, causing power cuts that affected over 7.4 million houses and companies, however, it’s force has been revised to a tropical storm.
In the case of Hurricane Harvey the effect was potentially and possibly catalyzing growth of oil prices for some time, it’s quite different with Irma, PVM’s Tamas Varga pointed out in a message. The region possesses no refinery capacity, so the primary worries are those linked to oil demand slump, he also said.
According to Goldman Sachs demand could diminish by 900,000 barrels daily during the current month and 300,000 barrels daily in the next month because of the hurricanes.