Latest Insight

Last Look - Gas settles 20c higher on cooler weather forecasts

Latest Insight

Last Look - Gas settles 20c higher on cooler weather forecasts

Market Insights > First Look

First Look - Texas Energy Industry Braces for Impact as Hurricane Beryl Makes Landfall

July 08, 2024 | Rishi Rajanala

Oil is trading lower as Hurricane Beryl impacts Texas refiners
- Marathon and LyondellBasel said they have plans in place to protect their Houston and Galveston refineries but did not comment on whether throughput would be reduced
- Citgo is reducing refinery runs at its 165 MBbl/d Corpus Christi refinery
- Shell and Chevron have shut in crude production at some of their offshore production platforms
Refinery resiliency to be tested by summer heat and hurricanes (Reuters)
- US refiners could be impacted, potentially leading to higher fuel prices due to a combination of an above-average hurricane season and record summer heat
- With the 2024 Atlantic hurricane season ramping up, there is a risk of more storms impacting Gulf Coast refiners and oil producers
- High temperatures may also impact crude processers, as last year's extreme heat led to a 500 MBbl/d reduction in refinery throughput, according to JP Morgan

Looking for interest rate charts? We moved them here

Interest Rate Charts and Tables

Natural gas prices trade higher in early trade following four straight weeks of losses
- Prompt gas was 4.7c lower to $2.366/MMBtu (As of 7:47 AM)
- The Summer ’24 strip is up 3.1 to $2.424, and Winter ‘24/’25 strip is up 1.7c to $3.347
- Hurricane Beryl made landfall on the coast of Southeast Texas, prompting port closures which could affect LNG exports
- Lower 48 average temps remained unchanged from Friday’s 00z model with regional shifts including the Northeast warmer by 5.3 degrees and the Midwest cooler by 20.9 degrees (Criterion)
- The European Ensemble forecasts above-normal temps until mid-next week, then a shift to below-normal
Texas Energy Industry Braces for Impact as Hurricane Beryl Makes Landfall (Reuters)
- Hurricane Beryl made landfall near Matagorda, Texas, with winds of 80 mph, disrupting oil and gas operations
- As of Monday morning, nearly 490,000 homes and businesses in Texas lost power, according to PowerOutage.us, and flash flood warnings were issued for southeastern Texas
- Key ports, including Corpus Christi, Houston, Galveston, Freeport, and Texas City, were closed
  - Kinder Morgan shut its West Clear Lake and Dayton natural gas storage facilities, as well as the Texas City processing facility, ahead of the storm, with minimal impact on pipeline operations expected
  - Freeport LNG preemptively shut down liquefaction trains 1, 2, and 3, along with a pre-treatment facility, and plans to restart them efficiently to minimize flaring

^