World oil prices have decreased after stopping refineries in the Gulf of Mexico

© RIA Novosti / Vitaly to Timepiece in fotosannette the machine-rocking. Archival photoWorld oil prices have decreased after stopping refineries in the Gulf of Mexico© RIA Novosti / Vitaly to Timepiece the image Bank

World oil prices decline on Monday; WTI is cheaper by more than 3% due to investor concerns that demand for oil will decrease because of the inability to «digest» the raw material after the closure of the refineries in the Gulf of Mexico during the hurricane «Harvey», according to the auction.

As of 19.08 MSK price of November futures for North sea petroleum mix of mark Brent has decreased on 1,31% — up from 51.30 per barrel. Price of the September futures for WTI fell by 3.34% to 46.26 per barrel.

In connection with the closing of refineries on the shelf of the Gulf of Mexico at the end of last week because of the hurricane «Harvey» investors fear that demand for the us brand West Texas Intermediate (WTI), which is produced in Texas and is mainly used for the production of gasoline, will decrease sharply in connection with the inability to meet the demand.

As reports Reuters with reference to a few refineries, as well as shipping companies, us traders strive instead to purchase the contracts on delivery of oil products from North Asia. In addition, it is expected that transatlantic fuel exports from Europe will increase.

«If us refineries will remain closed longer than a week, Asia will be forced to start it (oil — ed.) at the highest level, as in Europe, there is already no spare capacity», — quotes Agency the words of Petromatrix analyst Olivier Jacob (Olivier Jakob).

The price of WTI futures are very sensitive to disruptions in production in Texas, as tied to physical deliveries of crude oil, while Brent crude is traded freely. In the storm «Harvey», the industry will lose over 2 million barrels of oil per day of total production in Texas, 5.6 million barrels a day.

Read more about oil prices read more here >>World oil prices have decreased after stopping refineries in the Gulf of Mexico© RIA Novosti, Integratiebeleid in photomontaged forces in the world oil market

 

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