Oil prices sink, gasoline rises as Harvey hits US refiners

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U.S. traders were seeking oil product cargoes from North Asia, several refining and shipping sources told Reuters, with transatlantic fuel exports from Europe expected to surge.

“Global refining margins are going to stay very strong,” said Olivier Jakob, managing director of Petromatrix.

“If (U.S.) refineries shut down for more than a week, Asia will need to run at a higher level, because there’s no spare capacity in Europe.”

On Monday Mexico’s Pemex said supply of fuel was guaranteed in light of Harvey.

About 22 percent, or 379,000 bpd, of Gulf production was idled due to the storm as of Sunday afternoon, the U.S. Bureau of Safety and Environmental Enforcement said.

There might also be around 300,000 bpd of onshore U.S. production shut in, trading sources said.

In Libya pipeline blockades by militia brigades have slashed the OPEC state’s output by nearly 400,000 bpd.



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