Commodity Market: US Crude Oil extends losses as Hurricane Laura strikes Louisiana and Texas, no widespread damage to oil refineries

Futures on US West Texas Intermediate Crude Oil extended losses from the prior trading day on Friday, as Hurricane Laura made a landfall in Louisiana and Texas, but did not cause severe damage to oil refineries in the area.

On Thursday Louisiana was hit by Hurricane Laura, as its 240-kilometer-per-hour winds knocked down trees, caused damage to buildings and cut power to over 650,000 people in the state as well as in Texas. However, oil refineries avoided heavy flooding.

“Unless there is any lasting damage to oil production infrastructure, it would not be a surprise to see oil trade down a bit after the storm as damage assessment continues,” AxiCorp market strategist Stephen Innes wrote in an investor note.

310 offshore facilities were evacuated and 1.56 million barrels per day of oil output – shut down, or about 84% of Gulf of Mexico’s offshore production.

At the same time, 9 refineries shut nearly 2.9 million barrels per day of capacity, or about 15% of processing capacity in the United States.

Yesterday the Port of Houston, a key US crude oil export hub, reopened for commercial shipping, while oil major Exxon Mobil Corp was preparing to resume processing capacity at its refinery in Beaumont, Texas.

As of 9:04 GMT on Friday WTI Crude Oil Futures were edging down 0.26% to trade at $42.93 per barrel, while moving within a daily range of $42.75-$43.12. WTI Crude Futures have risen 6.58% so far in August, while being poised for a fourth straight month of gains.

Brent Oil Futures were edging down 0.37% on the day to trade at $45.43 per barrel, while moving within a daily range of $45.34-$45.76. Brent Oil Futures have risen 4.17% so far in August, while being on track for a fifth straight month of gains.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $42.97
R1 – $43.57
R2 – $44.11
R3 – $44.71
R4 – $45.32

S1 – $42.43
S2 – $41.83
S3 – $41.29
S4 – $40.76

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $45.19
R1 – $45.79
R2 – $46.46
R3 – $47.06
R4 – $47.67

S1 – $44.52
S2 – $43.92
S3 – $43.25
S4 – $42.59