27.08.2020
Market commentary on heating oil 27.08.2020
After tropical storm “Laura” was upgraded to a hurricane, a state of emergency has been declared in the coastal regions along the Gulf of Mexico. The hurricane is currently making landfall in the U.S. states of Texas and Louisiana, and devastating destruction is expected as it moves inland. This situation naturally supports prices; however, the market is currently showing a somewhat weaker tone. While such looming production outages would normally trigger strong upward movements, this effect is significantly muted in times of COVID. This is because storage facilities in the U.S. remain comfortably stocked due to sluggish demand. Reports such as the extension of the lockdown in India by another month or Norway’s plans for expanded oil production in the Arctic are further dampening the already weak sentiment.