If you were expecting a rude crude awakening for the United States’ supply post-Harvey, the effects are actually more negligible than previously thought.
While the Gulf now only provides 15 percent of the the United States’ oil, national crude production still remains near record highs, say analysts, meaning the market will still be bearish for the commodity. Refining capacity has also gone offline, and you have a decline in demand for the product.
“We think the developments for crude, despite [Thursday’s] rally, still look pretty bearish because of how many barrels are simply backing up with these refineries being offline,” RBC global head of commodity strategy Helima Croft said last week on CNBC.
And while Harvey did not affect the commodity, current strife around the globe in Libya may significantly impact the cost of crude, Croft said.