West Texas Intermediate (WTI) crude prices are in the neighborhood of $47.50 per barrel (/b) this morning. Demand for crude has dropped as refineries remain closed in the storm-battered U.S. Gulf Coast region. Approximately 10% of the country’s refining capacity has been closed. Key pipeline systems also have been closed, stymieing fuel distribution. Gasoline futures prices have surged, hitting highs not seen for two years.

Hurricane Harvey strengthened last week. It made landfall near Rockport, Texas (around 31 miles north by northeast of Corpus Christi), as a Category 4 hurricane. It was the first time a Category 4 hurricane hit Texas since Hurricane Carla in 1961. The storm was downgraded to Tropical Storm Harvey as wind speed waned, but it is carrying a mind-boggling amount of moisture. The storm system is lingering, creating some of the heaviest rains ever seen in the area—up to 50 inches in some locations. The rains are forecast to last for days, if not a full week. Catastrophic flooding is crippling the area.

Nearly 300,000 people lost electricity, according to the Electric Reliability Council of Texas (ERCOT). ERCOT oversees approximately 90% of the state’s electric power grid.

Crude prices are sagging, but they are receiving a bit of support from two developments. First, Baker Hughes released its rig count data for the week ended August 25. The rig count dropped by four oil rigs and two natural gas rigs, bringing the total count down to 940 from 946 last week.

Second, two more Libyan oil fields were shut in after armed militants took over the pipelines serving them. El Feel, also known as Elephant, has stopped production and Hamada is gradually stopping this week. The Libyan National Oil Company declared force majeure.

WTI crude opened at $47.89/b this session, an increase of 27 cents from Friday’s opening. Currently this morning, WTI prices are $47.53/b, down by 36 cents since today’s opening. The daily price range has been $47.23/b – $48.20/b. Last week, WTI opened on Monday at $48.72/b, and the market closed at $47.87/b on Friday for a net loss of 85 cents during the week.