U.S. based Buckeye Partners, the largest owner of oil storage facilities in the Caribbean, with 41.1 million barrels of capacity, said on Wednesday it shut its Yabucoa terminal in Puerto Rico. It is monitoring Irma's path to decide if it also has to close its largest terminal in the Bahamas. NuStar Energy on Tuesday closed its 13 million-barrel Statia terminal in the small island of St. Eustatius. Firms leasing tanks in closed terminals in St. Eustatius, St. Croix and Puerto Rico include traders Vitol, Glencore, Novum Energy and Freepoint Commodities, and Venezuela's state-run PDVSA, China's Sinopec and Russia's Rosneft, according to the sources and Reuters vessel data.
Restarting refiners helped gas prices sell off but as Floridians look to escape Hurricane Irma’s wrath, there was strong demand and gas lines and shortages, prices did not collapse as the trade awaits what damage could be in store. Still with the projected path of the storm moving a bit more east we are seeing the market adjust a bit. Orange juice futures eased off a bit as the eastward track may not entirely wipe out Florida’s orange and grapefruit crop.
The API showed crude +2.79mm, the biggest build in five months. Cushing, Okla. is +669k, gasoline -2.544mm, the biggest draw in six weeks. Distillates -610k.
Gasoline prices have jumped in the past week. Nationwide, the average gasoline price was $2.65 a gallon. Tuesday, 30.2 cents higher than a month ago, according to AAA.
Reuters reports oil output at Libya’s Sharara field, the country’s largest, was resuming on Wednesday after a valve was reopened on a pipeline shut by an armed group for more than two weeks, Libyan oil industry sources said.