A growing number of companies are “running” to build export terminals in the Gulf of Mexico. The reason for this growth is an excess amount of oil in the ports of Houston and Corpus Christi. Deepwater crude export terminals are needed from the thriving Permian Basin. Requiring billions of dollars of investment, they would stretch from Brownsville, Texas to southeastern Louisiana. “The congestion is shifting from the Permian Basin to the Gulf Coast,” said Sandy Fielden, director of oil and products research at investment research firm Morningstar. “There’s lots of traffic that these offshore terminals can sort of bypass.”
Back in December of 2016, the United States lifted its crude oil export restrictions. This new source of seaborne cargo, changed the global tanker industry. This adjustment intensified operators focus on U.S. crude ever since. With the recent renewed sanctions targeting Iran and rising geopolitical tensions near the Strait of Hormuz. However, with the rising U.S. tanker markets, is this a positive change or is there a downside?
If the quote "the trend is your friend" isn't the true narrative of the energy complex over the past 20 trading days, I'm not sure what other phrase may be used to depict exactly what we have witnessed. WTI crude for August delivery has had a 20.15% rally from its lows on June 12th to its highs on July 11th with only seven opportunities to buy lower on the day and watch it rally over the following days.
Early Friday morning, a massive explosion occurred in south Philadelphia at the Philadelphia Energy Solutions Refining Complex. The 150-year-old oil refinery, opened in 1866 just after the Civil War, had a vat of butane ignite and explode causing Interstates 76 and 95 to close and even “rattled” homes in the South Jersey area.