Marathon’s Galveston Bay Refinery Was The Only Major Plant To Suffer A Significant Disruption Due To Hurricane Beryl

ULSD futures prices are leading the way lower this morning, trading 1% lower than yesterday’s settlement so far this morning. The prompt month crude oil and gasoline contracts are following suit, with more a tempered ~.5% move to the downside to start the day.

Marathon’s Galveston Bay refinery was the only major plant to suffer a significant disruption due to Hurricane Beryl yesterday. The 665mbd refinery has since restarted after briefly lost power (along with 2.7 million residents) as the category 1 storm made landfall and drenched the Texas coastline. The storm made landfall closest to Phillips66 Sweeny refinery (240mbd), which continued normal operations throughout.

The remnants of Beryl are forecasted to continue moving northeast across the Midwest region, dropping 2-4in of rain on St. Louis, Indianapolis, Chicago, and upstate New York. As of now there are no systems showing the potential for cyclonic development over the next week.

The Commitment of Traders report showed an increase in money manager confidence around heating and crude (American & European) oil futures as the smart money trimmed shorts and added new long positions for all three last week. Gasoline, and it’s long lost distillate cousin gasoil, both saw a decrease in their net managed positions last week as the speculative money piles on their short bets, banking lower prices amid low seasonal demand.

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