Gasoline costs are surging again on Thursday amid refinery closures in Texas attributable to Hurricane Harvey.
Gas futures for September delivery are up 12% to $2.11 per gallon at 10:40 a.m. ET. Of their eighth straight day of gains, futures are on their longest rising streak in 4 years, based on Bloomberg. Futures for October delivery additionally rallied.
Prices at the pump are also greater. The AAA’s common national gas worth at three:Forty three a.m. ET on Thursday was $2.449 per gallon, up from an average value of $2.348 per gallon last week.
Motiva’s refinery in Port Arthur, which is the largest within the US, shut down Wednesday as flood waters rose. And on Thursday, Colonial Pipeline, which owns the largest pipeline for gasoline distribution within the US, had deliberate to shut down its gasoline line because Gulf Coast refiners were unable to course of crude oil, Bloomberg reported. “Deliveries will probably be intermittent and dependent on terminal and refinery provide,the corporate stated in an replace.
To assist with the gasoline shortage, the Power Department stated Thursday it was releasing 500,000 barrels of oil from its Strategic Petroleum Reserve that holds supplies for emergencies. The company mentioned it loaned the barrels of both candy and sour crude to a Phillips 66 refinery in Lake Charles, Louisiana, which has not been affected by Hurricane Harvey.
The Fort Value Star-Telegram reported that some gasoline stations in the area might run out of provides during the Labor Day weekend. Gasoline stations on the East Coast might also expertise shortages, Bloomberg reported, and this could ship gasoline costs even higher.