How Hurricane Harvey Has Impacted Gas Prices

Dianna Christensen
September 3, 2017

According to GasBuddy, the national average USA gas price Thursday morning was $2.46/gal, up 4.6 percent from its average price a week ago.

Gasoline stocks USOILG=ECI rose by 35,000 barrels, compared with analysts' expectations in a Reuters poll for a 1.0 million-barrel drop.

Tropical Storm Harvey's impact on the energy industry spread worldwide as flooded US refiners and closed fuel pipelines threatened to squeeze national supply, roiling global fuel markets and rerouting millions of barrels of fuel to the Americas to avert shortages.

Last week, EIA said output climbed to 9.53 million barrels per day, nearing the record high of 9.61 million reached in June 2015.

AAA said the $2.28 per gallon cost, put into historical context, is the second lowest Labor Day weekend price in the past 13 years. Gasoline was up 21.03 cents, or 11.2 percent, at $2.0950 at 1:53 p.m. (1753 GMT).

Colonial said it hoped to make "intermittent" deliveries from points on the line east of Lake Charles, Louisiana, but was unlikely to have the line fully operational from Texas before Sunday.

United States gasoline futures hit a new a two-year high on Thursday (31 August), after Storm Harvey made a second landfall over the Louisiana coastline resulting in the closure of America's largest refinery and another key regional pipeline.

High production pressured crude oil (USO) (UCO) prices.

By 4:36pm EST, WTI was trading at $46.38 with Brent Crude trading at $51.96.

Mueller reportedly has draft Trump letter explaining Comey firing
The letter the president ultimate sent to Comey was composed deputy attorney general, Rod J. The letter of dismissal given to Comey was different from the original version.

UK PM Theresa May arrives in Japan to soothe Brexit fears
The Council, which was created at the end of 2013, consists of Prime Minister Shinzo Abe and key ministers. In terms of what's we're doing, we're looking to work with our partners.

US Open results 2017: Venus Williams, Maria Sharapova advance
The color also paid tribute to the little black tennis dress she wore in 2006 to beat Justine Henin-Hardenne and win her only U.S. Even though we've had our battles on and off the court, I believe both of us have an incredible amount of respect for each other.

"When Katrina and Rita hit, crude prices went up because so much of our production in 2005 was offshore and the storms just halted it", he said.

"The market has turned in reverse pretty sharply", said Gene McGillian, anager of market research at Tradition Energy.

"This is going to be the worst thing the USA has seen in decades from an energy standpoint", said an East Coast market source, who declined to be named as he was not authorized to speak to the press. "It's a business and if you don't want to spend it, then I guess don't drive", Samarah said.

"Harvey's disruptions mean greater variability in the weekly USA oil inventory, production and demand data in the next weeks, which will likely add to higher volatility", Giovanni Staunovo, an analyst based in Zurich, told Bloomberg.

"Best case: the refinery should be up and operating again for the most part by the middle of September".

Onshore production from shale formations such as the Eagle Ford, which S&P Global Platts said was producing about 1.34 million bpd of oil prior to the storm, is in the process of being restarted.

But gasoline futures skyrocketed 7% to a 25-month high, as traders realize that refineries will be shut for some time.

That is down 14.5 percent from record levels in March past year. "But by the end of September, I expect the situation to be nearly back to normal", said Frank Schallenberger, head of commodity research at LBBW. However, as production in California, and Alaska, has declined, the state has come to rely more upon foreign oil sources, which now contribute more than half the crude oil refined in California.

Other reports by GlobalViralNews

Discuss This Article

FOLLOW OUR NEWSPAPER