Texas Refinery Shutdown Profit Taking
Crude oil prices were on the defensive and dropped more than $3.50 from Thursday’s high before finding their footing overnight. There has been talk that it may take some time for Texas refineries to resume full operations after this week’s severe storms. While many oil wells have been shut down as well, crude stocks are expected to rise.
Both RBOB and ULSD are under pressure this morning, they are close to their recent highs. Texas refinery activity has dropped sharply this week, and it will take some time for them to fully recover, which has provided some support to product prices.
Natural gas prices have shaken off early pressure and have climbed back towards unchanged levels overnight. There are signs of returning production in Oklahoma and Texas, and the US temperature forecast shows much warmer temperatures for three-fourths of the US out to March 3.
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