WTI keeps getting hit due to concerns over production capacity/Hurricane Harvey

WTI continues to suffer as markets come to terms with a number of times it might take for refining capacity in the Texas and Mexican Gulf Coasts to come back on line due to Hurricane Harvey that is expected to close around 2.2 million barrels a day of refining capacity, according to S&P Global Platts.

Hurricane Harvey hit the Texas Gulf Coast late Friday as a Category 4 hurricane. The Hurricane was then downgraded to a tropical storm, although the rains have devastated the area with huge flooding. It has been reported that at least five deaths were believed to have been related to the storm.

USD/CAD bulls in control, Hurricane Harvey induced buying towards 1.25 handle

Meanwhile, refinery shutdowns continued to spread Sunday and that is what is weighing on the price. Even futures beyond the front months are taking a hit with the market expecting that refineries will demand less oil as they take weeks, maybe longer, to come back on line. U.S. desks are looking to refiners in North Asia in search of product cargoes
while the closure of the Houston Ship Channel and loading terminal in the Houston area is likely to hamper imports and exports of crude oil and oil products for weeks, which could substantially distort U.S. inventory data, explained analysts at Commerzbank. In terms of levels, $45.40 and July 24th lows and $43.70,10th July lows are big levels to the downside while 448.50 is a likely string resistance tot he upside.