US crude prices rise as refineries restart production


US oil prices have improved as refineries in the Gulf region of the country that closed after storm Harvey have resumed production. 

Brent crude futures dipped 3 cents to $52.31 a barrel, while US West Texas Intermediate (WTI) crude futures gained 26 cents to touch $47.55 a barrel, reported Reuters.

The gasoline prices fell by 4% to $1.68 a gallon, having previously increased following the nullifying of a significant number of US inventories. 

Rivkin Securities investment analyst William O‘Loughlin was quoted by the news agency as saying: "Gasoline fell as refineries in Texas began to reopen."

"Gasoline fell as refineries in Texas began to reopen."

Hurricane Harvey that struck the coast of Texas on 25 August led to widespread destruction in the state and surrounding regions. 

Nearly 25% of the total refining capacity of the US was forced into closure. 

The US Department of Energy said that eight oil refineries with a combined output of nearly 2.1 million bpd that makes up to 11.4% of total refining capacity of the country were still closed as of 4 September. 

Brent crude futures slipped by 3 cents as traders are still apprehensive in investing in oil, a riskier asset compared with the safe investment in gold, following North Korea’s powerful nuclear test.