Gasoline prices head higher following Hurricane Harvey

Gasoline prices head higher following Hurricane Harvey

Gasoline prices head higher following Hurricane Harvey

In cash trading on Monday, the spread between Gulf Coast gasoline prices and benchmark futures hit a five-year high in anticipation of constrained supply.

According to the New York Times, Kentucky has the 3rd highest national average gas price of $2.42 - beat out only by West Virginia's $2.47 and Michigan's $2.59. "However, California fuel prices will likely increase", CEC Senior Fuels Specialist Gordon Schremp said in a statement.

Prices rose by 7 cents overnight between Thursday and Friday. So, we're starting to see shortages and problems outside the United States.

DeHaan says it probably is a good idea to fill up your tank soon, before the sharp price increases happen.

Analysts warned motorists not to panic even as stations run low on gas. "Gasoline price is the least of my concerns with that", Fawcett said.

Around 22% of USA refining capacity, or 4 million barrels a day, were down as of late Thursday, according to S&P Global Platts.

Fuel prices are expected to keep rising as refining capacity remains down because of the storm.

On Sunday, Magellan Midstream Partners suspended all inbound and outbound refined products and crude oil transportation services on its pipeline systems in the Houston area.

Oil prices fell on Friday in the wake of Hurricane Harvey, which has killed more than 40 people and brought record flooding to the oil heartland of Texas, paralyzing over a quarter of the US refining industry. Now the average price for a gallon of regular unleaded gasoline in Georgia stands at $2.51.

Analysts said the amount of oil was too small to make much difference.

U.S. Energy Secretary Rick Perry on Thursday announced a release of a million barrels of oil from the Strategic Petroleum Reserve, which, at a capacity of 713 million barrels, is the largest emergency crude oil supply in the world. "With this whole tip in the balance, in which the U.S.is in a deficit of gas production and the price of gas is soaring, that's drawing the eye of gas refineries around the globe".

A gallon of unleaded cost $2.25.

That is about to change, thanks to Hurricane Harvey.

On Friday, Illinois averaged $2.54 for regular, up from $2.36 August 1 and $2.33 a year ago.

"We do expect gas prices to continue increasing upwards of 10 to 20 cents", Casselano said. It's too early to tell if it will impact the USA, but it's forecast to near the Caribbean islands late Monday or early Tuesday.

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