KXIP vs KKR Live Score

While Harvey's refinery shutdown and Labor Day's arrival could push gasoline to a two-year high of $2.50 per gallon, Casselano said they will come down.

In Austin, Texas, one motorist said his friends are all filling up their tanks on expectations that prices would go up by the end of the day.

"You've got to keep in mind oil trades worldwide in one currency, which is the USA dollar".

MA is somewhat protected from Gulf refinery impacts due to its access to supplies from mid-Atlantic states and Canada, Maguire said, adding that the demand locally for gas also subsides somewhat after Labor Day as people settle back into their regular routines.

Outages that could last for weeks led to a sharp rise in gasoline and diesel futures prices in the United States and Europe, opening several arbitrage opportunities. Prices spiked significantly from Wednesday to Thursday, accounting for more than 7 cents of the recent spike, according to AAA data. "We anticipate the national average to top $2.50 per gallon".

S&P Global Platts, an information provider for prices and holdings within the energy market, reported 11 refinery plants in the process of closing or reducing runs.

Prices are expected to go back down after those Gulf Coast refineries recover. Harvey shut refineries that can process up to 4.4 million barrels per day (bpd) of crude.

The three refineries hold more than 10% of the nation's total oil output capacity. On Thursday, Texas Railroad Commissioner Ryan Sitton said people "have no need to fear shortages".

"Northeast refiners are stepping in and barging supplies to the U.S. Southeast, the Caribbean, Mexico and South America to offset the lack of supply from Gulf Coast refineries and pipelines shut down due to Harvey", Carrasco added.

Refineries with output of 4.2 million barrels per day (MMBPD) were offline Tuesday, representing almost 23% of US production, according to Reuters estimates and company reports.

Those increases are not due to a lack of supply in the region, however, as Idaho gets most its oil from Wyoming and is refined in Salt Lake City.


COMMENTS