Retail U.S. gasoline prices surge on Harvey supply disruptions

[DonViejo]

Source: Reuters




SEPTEMBER 2, 2017 / 5:24 AM / 9 MINUTES AGO

Julia Simon, Marianna Parraga

NEW YORK/HOUSTON (Reuters) - Retail U.S. gasoline prices continued to rise as pipelines and terminals remained closed in Texas a week after Harvey made landfall as a Category 4 hurricane, forcing refineries to warn customers about fuel-supply shortages.

Gasoline prices have risen more than 17.5 cents since Aug. 23, before the storm began. They were at $2.59 a gallon on Saturday, according to motorists advocacy group AAA, 16.7 percent higher on average than a year ago.

In Texas, the epicenter of the storm, where over 88,000 houses and businesses remain without power and reconstruction efforts have just begun, prices rose more than 3 percent from Friday to Saturday, and were up 12 percent from a week ago.

U.S. President Donald Trump and first lady Melania Trump on Saturday departed from Joint Base Andrews for their second trip to Texas and Louisiana since the storm started. They plan to visit flood survivors in Houston and Lake Charles, Louisiana.




Read more: http://www.reuters.com/article/us-storm-harvey-energy/retail-u-s-gasoline-prices-surge-on-harvey-supply-disruptions-idUSKCN1BD0B9

[Binkie The Clown]

1. Looks like I picked a good time to put an electric motor on my bicycle. nt

[Bengus81]

2. Gee...what a shock. Six or eight refineries control the US?

Actually crude is still cheaper than a month ago but that hasn't stopped our local QT from jacking prices by about 40+ cents in the last two weeks. Of course right on cue with the Houston refinery news they jacked it 20 cents overnight.

Funny...I remember when prices went sky high because of a refinery problem in Chicago a few years ago,hmmm...now we get it all from south Texas eh? Nothing but gouging because prices have been low.

[Igel]

4. There are something like 25 refineries in Texas.

That's about 30% of US production capacity.

Some more in Louisiana. Most are shut.

So, yeah, 30-40% of production does control the US. Imagine if 30-40% of food production or hospital capacity vanished.

Worse, one major pipeline from the Gulf to the NE was shut, so even refineries that might be up and running have a shipment problem.

It's worse. It'll affect things like asphalt and diesel and home heating oil and aviation fuel.

We have a good chunk of the petrochemical industry, too. Now, we might dislike plastics and such, but a lot are used for things like water bottles and PVC pipe. Nobody's geared up to use glass (which "saves energy" only if it's recycled, but since most of the country doesn't recycle it's more of a virtual energy savings).

[oneshooter]

3. This is because other "safer" states did not want them there.

Texas has the port facilities to handle both the bulk transport of both crude oil and finished product.

And some of ya'll want Texas to secede?

[BumRushDaShow]

5. "This is because other "safer" states did not want them there."

We had a huge refinery complex here in metro Philly (mostly Sunoco, but others as well as I think folks might remember the back to back Gulf and Arco fires), and it seemed that none of the oilcos wanted to stay here once the manufacturing folded. The closure of the Navy Yard and ship-building sortof sealed the deal (although a private company is now ship-building here). We also have the ports and can take the tankers up the Delaware Bay right into these plants in Marcus Hook and further upriver into South Philly.

But what has been happening is the discovery and exploitation of the Marcellus shale field in western PA with its liquid natural gas (and the cracking/refining of it into its other lighter carbon components like propane), and the refineries left here have been or are being reconfigured to handle that.

Interesting article on the history of the Philly oil and what is happening now with that - http://www.pennlive.com/midstate/index.ssf/2015/08/blackbeard_then_oil_now_gas_fe.html

This is why we keep demanding that they tax that shale gas production to get some funding to things like the schools in the state, which have no dedicated funding source.

[nitpicker]

6. The latest northern VA situation

Saturday morning:

Major gas stations: $2.43- $2.69 (excluding the pricey Exxon and Citgo one exit away from Fort Myer/Pentagon)

Independents: $2.55- $2.72

In all cases, at least 20 cents above prior levels for the majors.

They are probably anticipating replacing inventories with RBOB prices (currently about $1.75/gallon) up about 25 cents pre-Harvey.

The independents are charging 40-54 cents more a gallon.

[Mc Mike]

7. Western PA went from $2.59 to $2.89, at several stations by me.

An independent nearby had been 7 cents cheaper than the majors, pre-disaster, haven't seen new price yet.

[modrepub]

8. Southeast PA (Diesel)

Have a diesel car. I filled my tank @ $2.899/gal on Friday. Drove to Harrisburg, PA yesterday. PA Turnpike was $3.249/gal. Figuring most truck fleets have somewhat long-term contracts in place and as long as this is just a spike, most delivery costs won't rise to cover the fuel increases. Irma may keep the speculators busy depending on strength and track. Price volatility is where most market traders make (or loose) their money. Byproduct of capitalism (and I despise it).