The massive storm striking the U.S. Gulf Coast hurt insurance stocks and sent crude prices lower. But, as Fred Katayama reports, gasoline futures surged.
Hurricane Harvey unleashing its fury on the markets. Wall Street opened higher Monday, but Harvey sent insurance stocks lower. Taking the blow: Travelers, Allstate, and Hartford, which weighed heavily on the S&P 500. Oil stocks, like Exxon Mobil, Chevron, Marathon and Valero, went the other way, extending Friday's gains. Investors buying those oil stocks, even though U.S. crude fell more than one percent to below the level before the storm struck Friday. Harvey forced many refiners to shut down. Energy experts say those shutdowns along the Gulf Coast will curb demand for American crude. Mizuho Americas futures division director Bob Yawger: SOUNDBITE: BOB YAWGER, DIRECTOR OF FUTURES DIVISION, MIZUHO AMERICAS, (ENGLISH) SAYING: "We're going to have a lot more crude in storage at the tune of probably along the lines of 1.5 million barrels a day at least a week or two, maybe as long as three or four weeks. so that's a lot of crude that would have otherwise have had a home at the refinery that is now going to be burned off; it's not going to be burned off: it's going to be sent to storage." Those refinery closures, however, drove gasoline futures north to two-year highs. Sources tell Reuters U.S. traders are looking to secure diesel and jet fuel from North Asia as there's no spare capacity in Europe.