Oil prices rise over US supply disruptions


Oil prices have increased after tropical storm Harvey severely affected production from US oil refineries. 

International Brent crude futures LCOc1 gained 29 cents and traded at $52.18 per barrel, while the US West Texas Intermediate (WTI) crude CLc1 climbed 30 cents to touch $46.87, reported Reuters. 

Disruptions in output were also reported in Colombia and Libya. 

The refinery outage also pushed US gasoline prices RBc1 to $1.7799 per gallon. 

Tropical storm Harvey caused massive floods in the US Gulf coast forcing closure of all refineries in the region. 

"The refinery outage also pushed US gasoline prices RBc1 to $1.7799 per gallon."

Traders opined that crude stocks are expected to increase in future as refineries are not expected to resume output soon. 

The Energy Information Administration data shows that as of 1 January this year, the US has 141 oil refineries with 30 located in Texas with a combined capacity of 5.7 million bpd. 

The Zawiya oil refinery in Libya was reported to be working only half its capacity as the Sharara oilfield has been shutdown for more than a week. 

Oil production was also disrupted in Colombia, following internal unrests that halted pumping operations of the country's 210,000bpd Cano-Limon Covenas crude oil pipeline, reported state oil company Ecopetrol and military sources.