Refiner demand is zero for Crude oil. So price tumbles
The price of crude oil is settling down -$1.30 or -2.72% at $46.57.
The high reached $48.20.
The low reached $46.15.
Houston's refineries are closed down due to Hurricane Harvey and as a result, there is no demand for the crude oil to be refined. So there is a back up of supply.
A guest on CNBC is reporting that refinery capacity in Houston is 13%. So 87% of the capacity is still online. However, anther commentator has stated that there is a planned release from the Strategic Petroleum Reserve. That just floods more in the system. So the implications still seem more bearish going forward and may shift the ceiling down from $50ish to $48ish.
