Harvey's impact on local gas minimal

Harvey's impact on local gas minimal

Incessant rain from Harvey, which slammed ashore as a strong hurricane late last week, has submerged much of Houston and shut down Texas's oil and gas industry.

The average price for a gallon of gas Wednesday was $2.404, up from $2.378 Tuesday, according to the American Automobile Association (AAA). Notably, that behemoth cyclone caused pump prices to jump as much as 30 cents per gallon in one day in some areas, and to cross the $3 per gallon threshold nationally for the first time ever.

As I wrote here, though, the changes wrought by the shale boom mean the effects on energy markets are more nuanced than a decade ago, when a strong hurricane virtually guaranteed leaping oil and gas prices. "We are in a rather unique situation because we usually see a price drop after Labor Day", Mac said.

At $2.75 a gallon, Idaho motorists are paying 29 cents more today than a year ago, and prices could reach $2.85 per gallon in the coming days.

According to AAA Kansas, gas prices have been on the rise for the past week to 10 days.

"When demand is down, prices still go up because of political strife in the Middle East or in Nigeria or on the salt flats of Utah", the Salt Lake City native proclaimed as he filled up his daughter's tank before sending her off to college.




The nation's least expensive markets are SC ($2.11), Alabama ($2.12), Arkansas ($2.12), MS ($2.12), Oklahoma ($2.13), Missouri ($2.14), Virginia ($2.15), Louisiana ($2.16), Tennessee ($2.16) and Texas ($2.17). Time will tell if demand recovers faster than supply, or vice versa, and prices will be impacted by the outcome.

About a quarter of all the refineries in Texas are knocked offline, including the largest refinery in America.

GasBuddy.com determined the best day to buy gas is Monday because prices are usually cheapest then.

Hurricane Harvey has already had an impact on gas prices, and it's expected to continue having an impact for weeks to come.

"Oil prices are going down, and the kink in the hose is the refinery", DeHaan said. "Despite the country's overall oil and gasoline inventories standing at or above 5-year highs, until there is clear picture of damage and an idea of when all refineries can return to full operational status, gas prices will continue to increase", added Meade. "The impact could linger for several weeks or longer".

Prices have been fairly stable since August 9, when they jumped to $1.29 from $1.22 the day before. Modesto- $2.81/g, up 0.7 cents per gallon from last week's $2.80/g.

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