Among victims of Hurricane Harvey that recently hit the coast of the Gulf of Mexico not only the local citizens. The tropical storm also influenced the global oil markets, where the consequences were also quite serious. Crude prices were literally thrown in different directions. Brent went up, while WTI, on the contrary, dropped in price. The reason for the fall is simple. Hurricane Harvey temporarily hindered operation of more than a quarter of the US oil refineries. Thus, the demand for oil in the country fell sharply. The shutdown also affected oil stockpiles. According to the American Petroleum Institute (API), the US oil inventories increased by almost 3 million barrels, while gasoline stocks contracted. Still, the consequences turned out to be lesser then previously predicted, as the affected refineries were able to return to work much earlier than expected. According to experts, traders should not focus on the news about hurricanes, which are likely to cause high volatility, but pay more attention to the fundamental factors. Despite the mess caused by the hurricanes, the trend remains upward in the big picture, even WTI started to grow again. But people are still on the alert.
Right after Harvey, another two powerful hurricanes Irma and Katia hit the Gulf of Mexico. However, the period of natural disasters is no over, as Hurricane Jose is following a similar path and could hit the same islands in the coming days. Now, it is difficult to properly assess what this storm will bring. Anyway, oil prices are likely to react to them the same way as to Harvey.
