The crude oil trade has been totally eclipsed by the focus on the so-called glut of crude even as the oil market, due to massive supply withdrawals, is the tightest it’s been in years when you compare it to record demand. The forward demand cover on oil supply in the United States has fallen to 26.7 days of supply, which is the lowest since Oct. 2, 2015.
Tropical Storm Karen retained its strength as the system encountered shearing winds on a path through the Gulf of Mexico to the U.S. coast. The storm is no longer expected to become a hurricane, forecasters said.
The market is taking in stride the first potential hurricane in the Gulf of Mexico this season as its seems a bit more worried about a government shutdown ahead of a looming deadline over the fiscal ceiling debate.
As Hurricane Isaac passes through the area over the next several days the industry will be able to quickly assess the condition of the oil and Nat Gas facilities. Until then, it focuses on inventories.