Hurricane Harvey's Continued Affect On Gas Prices

AZ Gas Prices Likely to Be Affected by Hurricane Harvey

About 19 percent of the Gulf Coast's oil refining capacity is offline, and the USA market is losing about 3 million barrels of gas production per day.

Hurricane Harvey, which is now pummelling Texas with rain, is to blame for the uptick in gas prices in the Montreal area.

As the life-and-death circumstances of Tropical Storm Harvey occupied the minds of countless Texans, the pocketbook consequences of the massive storm were already having an effect on Americans who drive.

More than one-fifth of USA refining capacity has been shuttered, according to S&P Global Platts.

AAA reports the national average for a gallon of gas is up four cents, to $2.37 a gallon, making it one of the largest one-week increases this summer.

The good news is prices are not expected to increase more than 25 cents, and are not expected to reach as high as during Hurricane Katrina. The impact could linger for several weeks or longer, depending on how long it takes Texas refiners to return to normal operations.




Damage to the refineries and timelines until they are back up and running is still unknown.

According to the U.S. Energy Information Administration, the Gulf of Mexico amounts to almost a fifth of the United States' total crude oil production. Wholesale prices of gasoline have risen as much as 5 percent in futures, the highest since July 2015. "It has to come from Asia even".

With current average prices statewide hovering around $2.30 per gallon, a predicted 15 cent per gallon increase would still be well below prices in years prior. The coastal swath from Corpus Christi to New Orleans is one of the most industrialized petroleum regions in the world.

Exxon, Shell and other companies have reported to Texas regulators that some of their storage tanks and other facilities near Houston were damaged by the torrential rains and flooding. Conde expects that, at the most, prices would rise by 10 cents because of competitive pricing around the country.

Transportation systems which carry gasoline or crude could be impacted. The amount being charged for gasoline will likely go up as the crippled energy industry in and around Houston continues to deal with the historic storm's impact.

"Basically, it's economics 101", Mac said.

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