27 Aug 2020

JBC in the Media - MarketWatch

"The Interior Department’s Bureau of Safety and Environmental Enforcement late Wednesday estimated that 84.3% of current oil production in the Gulf of Mexico had been shut in, along with 60.94% of natural-gas production. Over 45% of total U.S. petroleum refining capacity is located along the Gulf Coast, according to the Energy Information Administration. Around 3 million barrels a day of U.S. refining capacity was closed or reduced, estimated JBC Energy, a Vienna-based consulting firm."

"Still, potential knock-on effects, including flooding that damages equipment, can hinder the recovery, JBC analysts wrote. Overall, they expect to see a further weakening of Gulf of Mexico crude prices relative to the cash price for WTI in Houston, a process that is already under way, according to media reports.

Product stocks, however, may fall in the near term, which could provide support for refining margins, the JBC analysts said."