Economy

Gas price ripple effect hopefully minimal in Oregon

Gas price ripple effect hopefully minimal in Oregon”

As gas prices spike across Texas and fuel runs short at some gas stations, officials say there's no shortage of fuel in the state because of Harvey. Another reason prices may not go higher is that prices have already jumped recently.

"No doubt, Harvey has impacted operations and access to refineries in the Gulf Coast".

In addition to refinery shut downs, several major pipelines continue to operate at reduced rates, have shut down, or plan to shut down due to lack of supply.

He says it won't last forever.

Oil experts expect more price increases another 50 cents a gallon after the holiday, before dropping again later this month.

"We are going into winter".

Supply shortages have developed even though there are almost a quarter of a billion barrels of gasoline stockpiled in the United States.

The region from Corpus Christi, Texas, where Harvey made landfall, to the Louisiana state line accounts for about 3 percent of the USA economy and is a crucial export market for oil and chemicals.

Florida is feeling an indirect hit from Hurricane Harvey. "We barely have enough for ourselves", he said.

AAA tells News 3 19% of the oil refining capacity is offline since the storm hit.

"Concerns and even panic over gasoline shortages are leading to a sense that there's a gasoline shortage", he said.

Most parts of Ontario, Quebec, and Manitoba have seen prices shoot up 12 cents a litre since last week, while the average price for regular unleaded in Alberta is up 8 cents.

One terminal operator in the New York Harbor region which receives distillate fuel supplies from Colonial said it expects disruptions to its next batch of supplies set to arrive on September 6.

Concerned about a surge in motor fuel prices, the DOE said the oil will be delivered to the Phillips 66 refinery in Lake Charles, Louisiana, which was not affected by the fallout from the storm. How quickly the refineries reopen will depend on the severity of the flooding and the restoration of power to the areas. USA motorists are likely to experience average increases of 10 cents per gallon to 20 cents per gallon because of the storm, GasBuddy.com reported Tuesday.



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