Monroe Energy, a subsidiary of Delta Air Lines, ran out of crude oil at its 185,000 barrel-per-day Trainer, Pennsylvania, refinery amid shipping delays due to rough seas caused by Hurricanes Jose and Maria, according to a source familiar with the company’s operations and Reuters shipping data.
U.S. crude supplies have been rising as imports and production recover in the aftermath of Hurricane Harvey, while refineries have been slower to restart.
The U.S. Energy Information Administration (EIA) releases stocks data later on Wednesday. U.S. crude inventories were seen rising for a fourth straight week, while refined product stockpiles likely fell last week, an extended Reuters poll showed on Tuesday.
Turkish President Tayyip Erdogan repeated on Tuesday a threat to cut off the pipeline that carries 500,000-600,000 barrels per day (bpd) of crude from northern Iraq to the Turkish port of Ceyhan, intensifying pressure on the Kurdish autonomous region over its independence referendum.
This potential loss, combined with 1.8 million bpd of output reductions by the Organization of the Petroleum Exporting Countries and non-OPEC producers, raised concerns of tighter supply.