U.S. oil terminals return to normal after Irene
Operations at the majority of petroleum terminals along the Northeastern U.S. have returned to normal after Hurricane Irene swept up the coast over the weekend, Reuters reports. Irene touched down in the New York region as a tropical storm but heavy rains put already swollen rivers over their banks, causing massive flooding in sections of the tri-state area of New York, New Jersey and Connecticut and logistical problems for terminal operators.
Traders said they expected the impact on gasoline, diesel and heating oil in the region to be limited.
The NYMEX declared force majeure on the August heating oil contract. The contract, which had only a few days left before expiry, delivers into the New York Harbor and trade sources said it had no lingering impact.
Terminals were open for gasoline deliveries ahead of the upcoming Labor Day weekend but flooded roads, power outages at gas stations and downtime at several key refineries could cause regional problems.
"It could be acute to areas affected by Irene," said Troy Green, a spokesman for of travel club AAA who expects the rest of the U.S. to escape unscathed.
Motiva Enterprises said on Wednesday it reopened all its terminals in areas impacted by the storm. According to the company website, Motiva, a joint venture between Anglo-Dutch giant Royal Dutch Shell (RDSa.L) and Saudi Arabia's Aramco, has 12 terminals in the northern region.
Kinder Morgan (KMP.N) said all operations were back to normal except at its Carteret terminal in central New Jersey. Located on the Raritan River, the terminal was recovering from the flood.
"We are still not back to full operations at Carteret, but the docks and the pipelines are back to full service." said Joe Hollier, a spokesman for the company.
A sister terminal across the Arthur Kill in Staten Island reopened almost immediately after the storm.
Hess Corp (HES.N) owns a 70,000 barrel per day refinery in nearby Port Reading, New Jersey. The company said operations were returned to normal after cutting rates ahead of the storm.
Truck racks and all terminals with the exception of two in upstate New York reopened shortly after the storm, a company representative said.
Traders said they expected the impact on gasoline, diesel and heating oil in the region to be limited.
The NYMEX declared force majeure on the August heating oil contract. The contract, which had only a few days left before expiry, delivers into the New York Harbor and trade sources said it had no lingering impact.
Terminals were open for gasoline deliveries ahead of the upcoming Labor Day weekend but flooded roads, power outages at gas stations and downtime at several key refineries could cause regional problems.
"It could be acute to areas affected by Irene," said Troy Green, a spokesman for of travel club AAA who expects the rest of the U.S. to escape unscathed.
Motiva Enterprises said on Wednesday it reopened all its terminals in areas impacted by the storm. According to the company website, Motiva, a joint venture between Anglo-Dutch giant Royal Dutch Shell (RDSa.L) and Saudi Arabia's Aramco, has 12 terminals in the northern region.
Kinder Morgan (KMP.N) said all operations were back to normal except at its Carteret terminal in central New Jersey. Located on the Raritan River, the terminal was recovering from the flood.
"We are still not back to full operations at Carteret, but the docks and the pipelines are back to full service." said Joe Hollier, a spokesman for the company.
A sister terminal across the Arthur Kill in Staten Island reopened almost immediately after the storm.
Hess Corp (HES.N) owns a 70,000 barrel per day refinery in nearby Port Reading, New Jersey. The company said operations were returned to normal after cutting rates ahead of the storm.
Truck racks and all terminals with the exception of two in upstate New York reopened shortly after the storm, a company representative said.