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