{"id":82276,"date":"2017-08-29T07:57:40","date_gmt":"2017-08-29T11:57:40","guid":{"rendered":"https:\/\/stateofthenation2012.com\/?p=82276"},"modified":"2017-08-29T07:58:02","modified_gmt":"2017-08-29T11:58:02","slug":"energy-stocks-slammed-after-hurricane-harvey-strikes-heart-of-u-s-oil-industry","status":"publish","type":"post","link":"https:\/\/stateofthenation2012.com\/?p=82276","title":{"rendered":"Energy stocks slammed after hurricane Harvey strikes heart of U.S. oil industry"},"content":{"rendered":"

Refiners bucked the trend on expectations that shortages will boost gas prices and profit margins<\/em><\/h3>\n

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Getty Images<\/p><\/div><\/p>\n

By CLAUDIA ASSIS
\nMaret Watch<\/p>\n

Deadly Hurricane Harvey struck at the heart of the U.S. oil industry over the weekend, and the effects of the powerful storm and its floodwaters are likely to ripple across the sector for weeks to come.<\/p>\n

Energy stocks were the biggest decliners in the S&P 500 index on Monday as the aftermath of the Category 4 hurricane continued to create destruction across a swath of Texas, with at least five people dead, thousands of residents displaced, and scores injured after the floodwaters rose.<\/p>\n

See also:<\/strong>\u00a0Why oil prices are sinking as gasoline soars after Harvey<\/a><\/p>\n

Shares of refiners were the exception. Refineries in the areas affected by the hurricane will likely be sidelined for weeks, and gasoline futures spiked. Downtime is a negative for the refining industry, but better margins would more than compensate for the effect.<\/p>\n

Shares of refiners that operate mostly outside the Southeast jumped the most, with stock of Delek U.S. Holdings Inc.\u00a0DK,\u00a0+8.79%<\/span><\/a><\/span>\u00a0PBF Energy Inc.\u00a0PBF,\u00a0+8.30%<\/span><\/a><\/span>\u00a0\u00a0and HollyFrontier Corp.\u00a0HFC,\u00a0+6.46%<\/span><\/a><\/span>\u00a0\u00a0all surging more than 7%. These would be best positioned given the widening crude differentials and their unaffected operations, analysts at Raymond James said in a note.<\/p>\n

\u201cIf product flow from the Gulf Coast to the East Coast is disrupted, PBF Energy may see benefits given its relative overweight position in the northeast,\u201d they said.<\/p>\n

Read now:<\/strong>\u00a0Don\u2019t let anyone tell you Hurricane Harvey won\u2019t damage the U.S. economy<\/a>\u00a0<\/span><\/p>\n