Hurricane Laura is taking out 2.8 million bpd of refinery processing capability off-line or close to 15% of total U.S. capacity.
This storm is becoming ugly, and in normal economic times this would cause huge speculative spikes in gasoline and diesel futures prices.
This time, we can sort of thank the pandemic for something.
With few consumers on the road and even less in the air, U.S. inventories of gasoline, jet fuel, and diesel are at historic highs and can hopefully counter any ongoing damage that this storm may cause.
– Roger McKnight