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Gasoline Soars, Crude Suffers Due to Storm

August 28, 2017 at 23:13 by Vladimir Vyun

Crude oil fell on Monday, while gasoline prices soared. That reason for that was Tropical Storm Harvey. It caused a shutdown of many refineries, resulting in more than 13% of US refining capacity being offline. That means lower supply of gasoline and smaller demand for crude oil.

Previously, crude was getting some support from continuous drawdown of US inventories. The stockpiles were shrinking for ten weeks in eleven, with one week with almost no change. But Harvey can change that as lower consumption may result in swelling reserves.

October futures for delivery of WTI crude oil rose by $0.15 (0.37%) to $46.74 per barrel as of 23:02 GMT on NYMEX today after sinking by $1.3 earlier. Contract for Brent crude dropped 0.99% to $51.89 per barrel on ICE. RBOB gasoline jumped as much as 1.03% to 1.73$ per gallon on NYMEX.

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