Weekend Summary

Have an article worth sharing? Send it to FUELSNews@mansfieldoil.com, and we’ll share it next week in our Weekly Summary segment.

 

Oil Markets Roiled as Harvey Hits U.S. Petroleum Industry

All eyes are on Harvey this week, as the storm affects the nation’s hub of production and oil activity – Texas. The most powerful storm to hit Texas in 50 years, Harvey has taken nearly 30% of the Gulf Coast’s refining capacity offline, while also temporarily shutting in crude production. That equates to 2 million barrels (84 million gallons) of refined products not entering the market. Click here to read more from Reuters.

Forget OPEC, China Controls Oil Prices

With most of the fundamental news in the market related to OPEC and U.S. production, one overlooked country contributing to global supply/demand balance is China. As China fills their Strategic Petroleum Reserve, their demand has been growing rapidly. If China decides their reserves are full enough, a scenario that is highly likely to occur over the next year, their demand growth could decelerate, throwing the market back into a supply glut. Click here to read more from Yahoo Finance.

North American Midstream Strategy in a Time of Uncertainty

The midstream industry, which includes transportation between crude producers and refineries, is struggling to define its strategy for the coming years. While rising U.S. production has increased throughputs on pipelines, there are three threats on the horizon. First, stranded assets (ie, a pipeline to a basin that is no longer economical) require more strategic decisions about assets in the future. Second, favorable contracts with take-or-pay clauses are increasingly coming up for renewal, putting cash flows in jeopardy as shippers will likely opt for lower contracted volumes. Finally, private equity firms are entering the midstream space, offering shorter-term deals and changing industry dynamics. Click here to learn more about how these changes will affect the midstream industry from Bain & Company.

OPEC/Non-OPEC monitoring committee says oil cuts could be extended

While markets are moving in the right direction, the OPEC monitoring committee says that an extension of production cuts could be extended beyond March 2018. We won’t know for a while though – a decision on an extension likely won’t be reached until OPEC’s November meeting. Once again, OPEC has conveniently left ample time for markets to speculate and bid up the market ahead of their decision. Click here to read more from Platts.

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Sign up for FUELSNews for daily market information and insights
Sign Me Up
Make a Call

We are happy to discuss your business challenges over the phone and answer any questions.

800.695.6626

Send Email

Ask your toughest questions. We'll get back to you with the best answer humanly possible.

Send Email

Find a Location

Need to contact a specfic office? View contact information for offices across the country.

View Locations

Get a Quote

Let us know what type of fuel or service you need and a team member will get a quote to you quickly.

Get a Quote