I think we’ve all heard enough about Harvey for the moment, so let’s put into perspective what the next two weeks may hold.
The Colonial pipeline supplies Gulf Coast refined products up through the southeast into New Jersey. Currently it is partially shut down, but is attempting a restart of the affected areas on Sunday. While this is great news, pipeline shipments will still be delayed 5-10 days. This means that the supply shortage situation in the South and Southeast will most likely still be problematic for the next 10-14 days. The Explorer pipeline’s primary line between Tulsa, Oklahoma and Hammond, Indiana is expected to resume service this weekend as well. New York Harbor supplies are still being brought south to alleviate the shortage which is raising prices in the Mid-Atlantic and Northeast. Long hauls are being done, taking fuel across multiple state lines to help prevent consumers and other end-users from running out of product in order to keep their cars/trucks moving or their businesses operating. Refined product cargoes from Europe and Asia are heading to the Americas in the Gulf Coast and Southeast, but safe and strategic arrival could be in jeopardy due to the new named hurricane in the Atlantic.
According to Accuweather, Hurricane Irma was about 1,700 miles east of the Leeward Islands Friday morning marked as a Category 3 hurricane. Forecasts project it to turn into a Category 4 over the weekend. The potential track of it is still unknown, but models predict it could make landfall in either the Northern Caribbean Islands, Florida, Carolinas, Bermuda, or go out to sea in the Northern Atlantic within the next two weeks. We will know much more in the first half of next week, but everyone should be aware that U.S. landfall is possible. The potential devastation from a human standpoint is obvious and the potential impact on our already beleaguered fuel industry is scary to contemplate.
It is pivotal for our customers to stay educated as the fuel situation is changing daily. Guttman Energy will do its best to accommodate you during these chaotic times.
Oct WTI crude currently trades down $0.12 to $47.11/barrel, ULSD is lower by $0.0054 to $1.7365/gallon and RBOB is lower by $0.0495 to $1.7297/gallon.