The oil benchmark end the session in a four-week high in its latest market session, as another Hurricane looms and might hit production. Refineries in the Gulf Coast also reopened and were welcomed with renewed demand for crude.
The storm chopped off more than 20% of the U.S.’s capacity to refine oil, which cut demand for crude and taking its toll on oil prices. The increase of the prices in the market is quick reversals of losses as the oil markets suffer from the aftermath of the Hurricane Harvey.
After Hurricane Harvey, the refining capacity has started to return to its original pace, providing support for crude. Although this may seem like good news, it is however a double edged sword as it presses on gasoline prices which rallied last week, gasoline deliveries for October fell by 1.15 cents a 0.7% drop to $1.7595 per gallon.
In addition to that Oil prices were also pushed further up as the Russian energy minister, Alexander Novak, would be open to extending their output cut agreements.
West Texas Intermediate U.S. crude oil for the month of October was up by 50 cents, a 1% increase to close the market at $49.15 per barrel, which is its highest close for the month of August while the Global Benchmark Brent Crude gained 82 cents a 1.5% increase to end the session at $54.20 per barrel.
In other Energy products, October Natural Gas was up by 0.9% to end the session at $3 per million thermal units while heating oil futures rose by 0.7% to end the session at $1.7595 per gallon.