Crude oil prices were sharply higher on Tuesday as Hurricane Harvey recovery efforts continued. Heavy and prolonged rainfall knocked out a large number of refining operations in the region, setting off erratic moves in commodities markets.
At least 4.4 million barrels per day of refining capacity was offline in the wake of the hurricane, based on company reports and Reuters estimates. Texas refines 5.5 million barrels of oil a day, the most of any state and roughly 30% of the U.S. refining capacity, while Louisiana accounts for around 18%.
West Texas Intermediate crude oil was up 2.9% to $48.66 a barrel on Tuesday, a three-week high.
STO Price at posting:
$3.81 Sentiment: Buy Disclosure: Held