Following the impact on the energy sector caused by Hurricanes Harvey and Irma, Macquarie analyst Vikas Dwivedi is out with a note saying the industry may finally be returning to normal.
While contending both storms, whose devastating effects ravaged the southern coasts of the U.S., are still influencing the Department of Energy's weekly statistics, we're finally reaching a turning point, he wrote in a note to clients obtained by Barron's.
"Refinery runs remain depressed by over 3 million BPD, reducing crude demand, but we expect these to increase to normal levels within two weeks," Dwivedi noted. "Gulf coast imports and exports will also directionally begin to return to normal levels, although with nearly 30MB of floating tanker oil we expect ST congestion will hamper flows of both crude and products."
And he views demand, especially in gasoline, to be returning to normal. Dwivedi reiterates his "Outperform" ratings on the shares of refinery companies Andeavor (ANDV) , HollyFrontier (HFC) - Get Report , PBF Energy (PBF) - Get Report and Valero (VLO) - Get Report .
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