No Reports of Major Damage To Oil Production And Refining So Far

On August 29, 2012 by TradingDesk

Hurricane Isaac has made its landfall, and is currently stalling over Louisiana. So far, there are no reports of major damage to oil production and refining infrastructure in the area. It’s too early to breathe a sigh of relief however, as the system continues to dump rain and could still cause major flooding and power outages.

Energy prices are slipping, most notably Gulf Coast gasoline, which is now trading below levels from last week – before the storm took its left turn.

All eyes will continue to focus on the storm today, and if major damage is avoided, will quickly turn to Ben Bernanke’s speech in Wyoming tomorrow. Today’s DOE report may make small waves, but it won’t be until next week’s report that we see what impact the storm preparation had on supplies. Technicals for energy and equity markets are showing signs of having topped out, with $3 the first downside target for RBOB and HO prices.

CLICK HERE for a PDF of this morning’s charts

 

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