Refinery stocks increase after Hurricane Harvey beats Houston; Travelers drags Dow lower
On Monday the shares of oil refinery companies increased due to Harvey. It is a Category 4 hurricane that has forced them to drop down. As the recent news are shocking the people that a storm was going to the 4 stage where it has become a tropical storm. This storm took a heavy face that has destroyed the Houston and many other areas from Texas within a weekend.
"As the storm took the monster like face major oil refineries from Houston were looking like fireworks at gasoline price. It took a movie that was reflecting in refinery stocks". This statement was by Peter Cardillo. He is a chief market economist at First Standard Financial.
RBOB gasoline futures for Sep delivery took a jump as much as 6.8% on Monday before business trading 4% increase at $1.7331 per gallon. U.S crude futures are for the delivery in the month of October. Meanwhile, the percentages fall down to 1.5 % to $47.17 per barrel.
Some of other shares of Valero Energy, Phillips 66 and Marathon Petroleum increased with 1% in the early trade. "We are looking at a mini gasoline point at the view of millions of barrels per day of U.S. refining ability lost for at least a couple of days," said Tom Kloza. He is the global head of energy testing at the Oil Price Information Service. He spoke this statement on Monday.
There are "some original queries about what happens when you have an expectation forecast of 30 to 60 inches of rain in a location like Houston. The locations where several refineries sit including with the ship channel at very humble number above sea level". Kloza added some of these lines in his statement.
The broader stock market, furthermore, traded combined as investors get set to wind up in August.
The Dow Jones industrial medium fell were 17 points. These are with Travelers contributing the most to the decrease. The 30 stock indexes traded larger earlier in the time interval.
The S&P 500 acquired 0.1 %, with health care leading six sectors larger. The Nasdaq composition also increases 0.1%.
While starting with Monday's period, the Dow, S&P as well as Nasdaq were all dropping for the month as investors struggle with remaining tensions about the Trump management’s ability to move ahead with tax change.