Hurricane Harvey causes gas prices to spike

Share
Hurricane Harvey causes gas prices to spike

US gasoline futures RBc1 have rallied roughly 26 percent from the previous week to a two-year high above $2 a gallon, buoyed by fears of a fuel shortage days ahead of the Labor Day weekend that typically brings a surge in driving.

If you're heading out on a road trip during the Labor Day holiday weekend, you might want to stash some extra cash in the glove box.

Goldman also said around 1.4 million bpd of crude production was disrupted, equivalent to 15 percent of total USA output. High refinery demand is bullish for crude oil (UWT) (DWT) prices, and high crude oil prices benefit crude oil producers such as Matador Resources (MTDR), Comstock Resources (CRK), Northern Oil & Gas (NOG), and Goodrich Petroleum (GDP). The vast majority of those traveling will be doing so on Virginia roadways where gas prices have been increasing on a daily basis due Hurricane Harvey's impact in the Gulf of Mexico.

Tom Kloza, global head of energy analysis at Oil Price Information Service, expects gasoline to rise to $2.75 per gallon.

Prices should continue to increase over the next week or so, but should drop later in September.

Harvey shut refineries that can process up to 4.4 million barrels per day (bpd) of crude. But a portion of that is now being restored.

US crude oil stocks fell sharply last week as refineries raised output with the approach of Harvey, the Energy Information Administration said.

However, the spike in gasoline prices will be short-lived, according to AAA. For now, there are no fuel shortages, even if prices at the pump are expected to rise. Missouri and other Midwest states are impacted by the reduced volumes in the Explorer Pipeline. The Alliance is the largest state oil and gas associations in the nation with more than 3,000 members in 305 cities and 28 states.

Average price per gallon of self-serve, regular gasoline. "Over the long term, the energy sector will have to consider the costs of additional hardening of the infrastructure on the Gulf Coast versus moving to a different location like the Eastern Seaboard".

But Sitton warned that if people rush to gas stations to fill up their tank out of fear that the supply will run out, they will cause an increased demand. "Supplies are going to be tight but they're going to get better". Blue dots represent natural gas wells. Shipbrokers said cargo flows to NY are expected to be the highest since November, when an explosion on Colonial Pipeline cut off supplies.

In the last few days, prices have soared an average of 10 cents a litre across the country. The operator expects the pipeline will resume normal operations on Sunday. The current average price is also a cent higher than the national average, $2.51, the highest price recorded all year, according to AAA.

"The hot spot to watch out for would be the east coast and NY harbor", said Kloza.

Motiva's Port Arthur refinery, the largest in the U.S., shut down on Wednesday and will be closed for at least two weeks, Reuters reported.

"Today was a big jump, more than usual, I can't think of the last time it jumped this high", he said.

Share

Advertisement

Related Posts

Uber Board selects Expedia's Dara Khosrowshahi as its new CEO
He told Bloomberg BusinessWeek that his family fled Iran just before the Iranian Revolution in 1978 when he was 9 years old. Iranian-American Khosrowshahi came to the U.S. with his parents as a child back in 1978 after the Iranian Revolution.

Hurricane Harvey barrels into Texas
President Trump on Friday night approved a disaster declaration for the state, freeing up federal resources to assist victims. Saturday morning, weather officials downgraded the storm to a Category 1 hurricane as it continued to make its way inland.

How Federal Flood Insurance Puts Homes at Risk
A spokesman for the Federal Emergency Management Agency declined to say how quickly funding would be depleted. Lujan says everyone is eligible for a national flood insurance policy, even renters.

Taylor Swift proclaims reinvention on new single
After making up, West name-checked Swift in his controversial song " Famous " past year , something that he said she had approved. Taylor Swift then issued a statement condemning Kanye West and Kim Kardashian and accusing them of "character assassination".

Virat Kohli's boys look to seal series
He eventually got to his half-century, his third successive 50 against India after 52 in Ranchi and 59 in Kolkata in 2014. Dinesh Chandimal, the Test skipper, returns to the side after being dropped for the earlier series against Zimbabwe.

In Myanmar, Buddhists take hard stance against Muslim Rohingya minority
The top official in Cox's Bazar, Mohammad Ali Hossain, said the bodies would be buried because no one had claimed them. Elsewhere in his remarks, he condemned coordinated attacks by an insurgent group on security forces last Friday.

At Least 1 Dead, 12 Injured In Rockport Due To Hurricane Harvey
According to AAA, almost half of US refineries are on the Gulf Coast, and a third of them are in Hurricane Harvey's path. Portland, Rockport, Port Aransas, Aransas Pass, Ingleside and Robstown have also been issued evacuation orders.

Google Drops ARCore Preview for Developers
With this set of basics, developers should be able to sink their teeth into some basic augmented reality thanks to ARCore . That gives it an advantage over Google's previous AR project, Tango , which needs special sensors and camera technology.

Congress urges people to maintain peace after Panchkula violence
Haryana's Panchkula , adjoining Chandigarh , where a CBI court gave a guilty ruling against the Dera chief, resembled a war zone. Restive mobs also resorted to stone-pelting, leading to security forces launching tear gas shells and employing water cannons.

Premier League Fantasy: Best Players in Gameweek 2
Leicester have opened their league campaign by scoring five in their first two games, with Jamie Vardy invigorated as the striker. As far as its utmost glory is concerned, it has won four titles but when you think of these crowns, the last came 90 years ago.

© 2015 Stocks News Daily. All Rights reserved.