Colonial is still working to reopen the pipeline from Houston to Herbert, Texas, near the Louisiana line, but says it has been able to move some fuel to the Carolinas from Lake Charles, La.
At the time, a moment of extraordinary uncertainty as floodwaters covered a third of Harris County's 1,777 square miles, the scene played out all over the region. However, there is an argument that this temporary shift will provide an opportunity, as the gap between crude and gasoline, alongside Brent and WTI, is likely to tighten as operations come back online. Harvey also caused eight refineries in Texas to shut down, the largest being ExxonMobil's Baytown operation, which has a capacity of 584,000 barrels a day.
Hurricane Harvey that struck the coast of Texas on 25 August led to widespread destruction in the state and surrounding regions. Another storm is developing behind Irma in the Atlantic, and an area of bad weather in the southwest Gulf of Mexico threatens to become a tropical storm in the next two days. Refineries will determine the demand for crude (input), and the supply of the products of crude, such as gasoline and diesel (output).
The extended surge in gasoline futures values was chiefly sparked by end of month reconciliations. The action was to provide the greatest degree of flexibility in sourcing supply.
Three million barrels of the reserves will reach Marathon Petroleum Corp and another 500,000 bpd will reach Valero Energy Corp. from the reserves at the Bayou Choctaw site, according to Bloomberg.
Natural gas for October lost 9.8 cents, or 3.2%, to $2.972 per million British thermal units on Nymex.
Harvey hit hard the heart of the U.S. oil industry. There may be some refineries that are down for weeks or longer. A Fox News survey this week found Trump with a 41 percent approval rating, but 49 percent of respondents supported his work on the economy.
"At this point, we're really waiting to see what the cumulative effect will be" from Harvey, said Paul Hesse of the U.S. Energy Information Administration.
Iranian Oil Minister Bijan Zangeneh said unofficial talks were under way to extend the cuts, adding that global crude inventories remained at high levels.
"The strong cooperation of the leading oil producers in combating the "oil glut" is making market participants hopeful that stocks may be quickly reduced, which is boosting the price rise", the Commerzbank analysts said.