The U.S. dollar, meanwhile, has declined steadily and, when the value of the greenback falls, commodity prices increase because more dollars are required to purchase the same quantity as when the value was higher. A quarter of US refining capacity to be taken off-line due to the hurricane, sapping demand.
Refineries operated at the lowest level in nine years after Harvey, which hit the Gulf Coast on August 25, shuttered plants on the Texas Coast as well as oil production operations and ports.
Given the only modest impact Harvey had on oil production, the combined demand loss generated by these two hurricanes will be a bearish shock for global oil balances in September of c.600 kb/d.
Brent crude oil futures for November delivery LCOc1 were down 66 cents at $53.12 a barrel while benchmark U.S. West Texas Intermediate crude CLc1 declined by 33 cents to $47.15. Pipelines from Cushing run to key refineries in the U.S. Gulf Coast of Mexico and the hub is an important indicator of crude demand.
USA gasoline stocks USOILG=ECI slumped 8.4 million barrels, the largest weekly decline since data began in 1990.
Total gasoline inventories fell by 8.4 million barrels last week, according to the EIA, and remain near the upper limit of the five-year average range.
Volkswagen's Entire Car Range Is Going Electric By 2030
It also follows Shell announcing it will begin installing electric vehicle charging points in the United Kingdom this month. The world's largest carmaker, Volkswagen , has pledged to electrify its entire range of cars by 2030.
The assessment echoed a report by OPEC forecasting higher demand for its oil in 2018 and pointing to signs of a tighter global market.
USA gasoline futures dipped after the data, and were down 0.4 percent at $1.6511 a gallon.
Florida, which was hammered by Irma, is the No. 3 consumer of gasoline among US states, according to Energy Department figures; neighboring Georgia ranks seventh.
"Based on recent bets made by investors, expectations are that markets are tightening and that prices will rise, albeit very modestly", the IEA said in the monthly report.
At the start of August, the OPEC meeting raised hopes of better compliance with Saudi indicating more export cuts.
The Organization of the Petroleum Exporting Countries (OPEC) members along with other key producers chose to reduce production by around 1.8 million barrels per day to the global oil glut and rebalance price levels.
The U.S. EIA on Tuesday revised its 2017 and 2018 U.S. oil output forecasts lower to reflect, in part, the effects of Harvey.