Due to hit Texas natural disasters in the state have closed many oil refineries
Hurricane “Harvey” raging in Texas, where are located a significant portion of the us oil industry, especially oil refining and oil companies, as well as transportation hubs. And this, among other things, leads to an increase in gasoline prices and changes in oil prices.
According to some experts in the field of insurance, the winds speeds over 200 km/h and rain for a few days which amounted to annual rainfall and caused severe flooding that struck the East Texas damages in the billions of dollars.
On Monday, gasoline futures rose 7 percent as investors calculated that the closure of several oil refineries and other companies could cause supply disruptions. Some experts believe that gasoline prices can rise by 6.5 cents per litre (25 cents per gallon). At some point, the crude oil futures decreased in price, since it was expected that the closure of refineries will reduce demand for this product.
According to media reports, the hurricane “Harvey”, whose intensity decreased to a tropical storm, the amount of crude oil fell by more than two million barrels per day. The volume of offshore production fell by about a fifth, as companies evacuated employees from the facilities before a dangerous storm. Closed and some transport facilities.
Hurricane-force winds caused severe damage to residential and non-residential buildings, and tropical storms caused severe flooding. As expected, heavy rains will continue for another few days, and it is unclear when the flood waters recede and you can resume work on closed objects. It is also unclear how serious the damage suffered energy infrastructure and how long it will take to restore her full power.
In Houston, the largest of the cities caught in the path of the hurricane, is home to more than six million people. Many residents fled the city before the storm, thousands were saved by the employees of emergency services, tens of thousands displaced to temporary shelters.
According to estimates by the Federal emergency management, for Federal assistance will address about 450 000 people.
The Federal reserve believes that banks should try to go towards companies and private persons, which because of the storm will be difficult to pay the loans. The fed is convinced that the work with “borrowers caught in a difficult situation” may not be contrary to standard banking practices and the public interest.