LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » World News

Retail U.S. gasoline prices surge after Harvey, global impact felt

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Updated: Sat, Sep 02, 2017
04:23 am
Reuters
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

Retail U.S. gasoline prices surged to two-year highs on Friday and global shipping routes were scrambled, even as some U.S. oil refineries began restarting in the wake of Hurricane Harvey.

Major fuel pipelines feeding the U.S. Northeast and Midwest were shut or severely curtailed, prompting shortages and dramatic spikes in wholesale cash prices that pushed the national retail average to $2.519 a gallon, the highest since August 2015.

Harvey raked across the Texas Gulf coast, roiling global fuel markets as it knocked out about 4.4 million barrels of daily refining capacity, slightly more than Japan uses. Tankers carrying millions of barrels of fuel have been rerouted to the Americas to avert shortages. European refining margins hit a two-year high amid the surge in exports, which included a rare cargo of jet fuel.

After record rains and flooding, the storm`s effects will be felt for weeks, possibly months. Only some restarts have begun so far.

Governor Greg Abbott said on Friday Texas will not run out of gasoline despite refinery issues.

"There`s plenty of gasoline in the state of Texas," Abbott said at a news conference. "Don`t worry. We will not run out."

The U.S. Energy Secretary approved an additional release of crude oil from the Strategic Petroleum Reserve, adding 3.5 million barrels to the 1 million barrels approved as of Thursday.

The Explorer Pipeline, which hauls fuel from the U.S. Gulf Coast to the Midwest, targeted a restart of its main lines on Sunday and Monday.

The Colonial Pipeline, the biggest U.S. fuel system, remained partially closed but said it kept operating its system east of the flood-hit areas in Texas.

Refiner Motiva warned customers along the Colonial route to prepare for shortages, a source at a fuel distributor supplied by Motiva said on Friday.

Marathon Petroleum Corp`s Galveston Bay Refinery in Texas City, Texas, had raised production to 45 percent of its 459,000 bpd capacity, sources told Reuters.

In Corpus Christi, Citgo Petroleum Corp
said it was beginning to restart its 157,500-barrel-per-day (bpd) refinery, while Flint Hills Resources and Valero Energy Corp were also moving to restart their plants, sources said. LIGHT AT END OF TUNNEL

Benchmark U.S. gasoline futures surged more than 15 percent after Harvey hit. But on Friday, U.S. gasoline margins tumbled more than 5 percent and gasoline futures fell almost 2 percent, their first daily loss since the storm.

"Yesterday, the anxiety over Harvey reached a crescendo," said John Kilduff, partner at energy hedge fund Again Capital LLC. With the restarts, "you can see the light at the end of the tunnel."

The biggest U.S. refiner, Motiva`s Port Arthur facility which can handle 600,000 barrels of crude daily, will be shut for at least two weeks, according to sources familiar with plant operations. (Graphic: http://tmsnrt.rs/2xzsKWz)

Other plants in the Beaumont/Port Arthur area will probably face challenges restarting. Waters have kept rising even as flooding receded in Houston, some 85 miles (137 km) west.

The U.S. average for a regular gallon of gasoline rose to $2.519 as of Friday morning, the highest since August 2015 and a 17.5 cent increase since Aug. 23, before the storm began, according to motorists advocacy group AAA.

Stiffer increases were reported in the U.S. Southeast. Pump prices in South Carolina have jumped nearly 30 cents a gallon. Prices were up nearly 20 cents in Texas.SHORTAGE WORRIES

Suppliers in the Chicago area hoped to avoid shortages and taking steps to try to prevent them as wholesale prices kept rising. 

Dave Luchtman, owner and president of Lucky`s Energy Service Inc, a small distributor in Chicago, has rented two storage trailers that hold 8,000 gallons each, expected to be delivered Friday.

"So I have a little lifeline," Luchtman said.

    Refineries serving Chicago have not yet hinted about fuel shortages, said Mario Orlandi, an operations manager at Olson Service Co, which supplies diesel and gasoline to the area.

"Cross our fingers, keep our tanks full," Orlandi said.GLOBAL IMPACT

In Venezuela, where financially strapped state-run PDVSA faced the possibility that scheduled deliveries, tankers floating offshore for weeks due to non-payment, will now travel to other Latin American destinations.

At least two cargoes scheduled to deliver to Venezuela currently in the port of Curacao are now expected to be delivered to Ecuador. Mexico, Brazil, Colombia and other countries were also seeking to tap some of the 7 million barrels of fuel sitting in the Caribbean sea.

In Brazil, state-controlled oil company Petroleo Brasileiro SA
has hiked gasoline and diesel prices twice for September to match spikes in U.S. prices caused by Harvey. [L2N1LI1VD] Elsewhere, OPEC officials voiced frustration that Harvey did not boost crude prices, despite the major disruption of U.S. energy infrastructure.

The U.S. Customs and Border Patrol said it received a request to waive the Jones Act, which mandates the use of U.S.-flagged vessels to transport merchandise between the nation`s ports.

Supplies from distant markets may not arrive soon enough to avert a crunch due to partial Colonial Pipeline closure.

"We are going to have outages from Texas to Boston," said one East Coast market source. The market is "way under-appreciating the magnitude of this."

Several East Coast refineries have run out of gasoline for immediate delivery as they sent fuel elsewhere. Concerns were mounting ahead of the U.S. Labor Day extended weekend.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

LATEST NEWS

INSANE 'Master' Box office collection! Vijay’s film opens with thunderous response in UAE; beats Wonder Woman 1984, Tenet

HDFC Bank Q3 net rises 14.36 per cent to Rs 8,760 crore

Getting Driving licence made easy! Here is how you can apply for licence in Delhi, UP, MP, Bihar and other states

Stock Market Outlook: Anil Singhvi reveals Nifty, Bank Nifty crucial support range for next week

7th Pay Commission: Apply for 119 Senior Residents posts on aiimsjodhpur.edu.in | Check salary, eligibility and more here

Amazon opens Alexa AI for firms to build their own assistants

WhatsApp delays new privacy policy by three months amid severe criticism

Earthquake today: 42 dead, 15,000 displaced in massive Indonesia quake

Loan moratorium case! Petitions in SC seeking direction for contempt of court proceedings against RBI Governor, others

IRB InvIT Q3 revenue almost flat at Rs 333 cr

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved