Storms Affect Oil & Fuel Markets - Commodities Update
The energy sector stood out the most during the third quarter as heating oil, gasoil, gasoline, and crude oil all saw higher prices. Gasoil, a fuel used in machinery, was affected following production disruptions in Texas from Hurricane Harvey.
The S&P GSCI Index, which tracks 24 commodities, rose 7.5% in the third quarter, a stark contrast from the 6.5% decline in the first half of the year.
Production disruptions in Texas are expected to keep domestic oil prices elevated, as measured by the West Texas Intermediate (WTI) benchmark, until additional production is reestablished. The price of WTI crude oil rose in September to a new 2-year high surpassing $51 per barrel.
Sources: Reuters, Bloomberg, S&P