The Energy Information Administration (EIA) reported quite clearly the impact that Hurricane Harvey and Irma had on gasoline supply. They reported the biggest gasoline drawdown in history, 8.428 million barrels, putting gasoline supply back to a three year low. Yet at the same, it showed what the U.S. refining community is going to have to do and it basically means that they will demand more crude oil as they look to rebuild supply.
While Florida and the rest of the Gulf Coast deal with the aftermath of Hurricane Harvey and Irma and the energy markets assess the short-term demand destruction, in the bigger picture for energy, we are getting very bullish data in supply versus demand.
Oil prices and petroleum products are starting to deal with the recovery phase in Florida and Texas and the rest of the Gulf Coast. Gas prices at the pump are showing signs of stabilizing as refiners come back on line and fears of demand destruction as places in Florida and in Texas are cutting into local demand.