Gasoline prices head higher while motorists panic

03 September, 2017, 20:45 | Author: Valerie Burke
  • Harvey has taken 25 percent of oil and natural gas production offline

According to AAA Kansas, the average Kansas per gallon price was $2.28 on Wednesday.

The closures rattled global fuel markets, and European and Asian traders diverted millions of barrels of gasoline and diesel to the Americas to help fill the gap.

Hurricane Harvey's impact on gasoline supplies and prices is beginning to be felt well outside the Texas Gulf Coast storm zone.

To be sure, USA motorists will feel the pinch from rising gasoline prices as refined products supplies are shut in, and US energy companies with Gulf of Mexico production or refining capacity, such as Exxon Mobil Corp.

The government plans to supply 1 million barrels of crude from the Strategic Petroleum Reserve to a Gulf Coast plant, the first emergency release in five years.

Traders were also scrambling to redirect fuel to the United States.

Joe McMonigle, a former Energy Department official during the Bush administration, said Jones Act waivers would make it more economical for Northeast refiners to receive oil stuck in the U.S. Gulf rather than source it from Nigeria or other places overseas.

Gasoline stocks USOILG=ECI rose by 35,000 barrels, compared with analysts' expectations in a Reuters poll for a 1.0 million-barrel drop.

The International Energy Agency, which co-ordinates releases of government-held fuel stocks in the event of major disruptions, said it believed the USA had plentiful petrol and diesel inventories to ride out current supply issues. Gasoline was up 21.03 cents, or 11.2 percent, at $2.0950 at 1:53 p.m. (1753 GMT).

Almost a quarter of US fuel output was knocked out since Harvey made landfall on Friday in Texas, where several large refiners are located.

As ports from Corpus Christi, Texas to Lake Charles, La. begin to reopen, although with restrictions, and some US refineries in Texas begin to resume operations, oil markets calmed a bit Friday.

Chelsea plan to sue Diego Costa for up to £50million
The 25-man squad lists had to be completed on Friday, with the Premier League confirming the selections on their official website. In July, Costa fuelled rumours of joining his former club after he was seen partying in Brazil wearing Atletico Madrid jersey.

Celtics send Cavs 2nd-round pick to complete Irving-Thomas trade
Reports say that they want more compensation in the trade following Thomas' medical test on his injured hip. But you aim high to work down to what they thought more realistic - another first round pick.

This 'Star Wars' model is LEGO's most expensive set ever
Open individual hull panels to access the detailed interior while retaining the overall exterior appearance. The new Millennium Falcon Lego set, coming October 1.The cockpit holds up to four minifigures at one time.

Price Futures Group analyst Phil Flynn, typically a bull on energy prices, wrote in his daily note that the release of SPR and temporary waiver on gasoline specifications "should take away some (of the) upward price pressure".

As of the close on Wednesday, WTI was at $45.96 a barrel, some $4.90 below Brent, a far bigger discount than the $2.62 that prevailed at the start of August. It had fallen by just over 2 per cent in the previous session.

"The market has turned in reverse pretty sharply", said Gene McGillian, manager of market research at Tradition Energy. "You do have some signs of rebalancing, regardless of Harvey", he said.

Harvey shows just how important the USA has become to the world's energy supply.

At the same time, the amount of crude entered into refineries reached a record high of 17.73 million bpd, the data showed. Crude inventories are 14.5 per cent below record levels hit in March.

"Next week's EIA data should see large draws in products due to refinery outages, prompting large builds in oil inventories", said John Macaluso, an analyst at Tyche Capital Advisors.

Right now U.S. shale crude won't be leaving the U.S. Gulf Coast, meaning buyers will have to seek short-term alternatives, such as buying light grades from West Africa or Southeast Asia. "But by the end of September, I expect the situation to be nearly back to normal", said Frank Schallenberger, head of commodity research at LBBW.

The poll was carried out before Hurricane Harvey hit US shores, curtailing USA refining by a fifth and disrupting offshore production.

"Best case: the refinery should be up and operating again for the most part by the middle of September". LaDoucer says the jump in price is greatest in eastern and southern states that get gasoline from the Gulf where refineries and pipelines are shut down.

Tessa Sandstrom, spokeswoman for the North Dakota Petroleum Council, also said no impact is apparent as far as markets, although some companies report more difficulty in getting fix parts for oil-field equipment.

Recommended:

  • Offaly people can now avail of €6500 scrappage for old cars

    Offaly people can now avail of €6500 scrappage for old cars

    Drivers can net up to £4,000 off a new Toyota until December 31 - as long as they've owned their current vehicle for six months. TOYOTA has launched its own scrappage scheme to mirror rivals offering thousands off new models if they ditch their dirty cars.
    Protect DACA and Pass the Dream Act

    Protect DACA and Pass the Dream Act

    Trump's immigration policies have sparked protests both inside the United States and overseas since he took office in January. The researchers narrowed in on 5,653 mothers born just before and after the cutoff date for DACA eligibility.
    Apple sets iPhone 8 launch date for September 12

    Apple sets iPhone 8 launch date for September 12

    There will also be an infrared sensor that will let users unlock the device using face recognition even in low light situations. As per a report in Chinese website GeekBar, the upcoming iPhone will come in three storage capacities 64GB, 128GB and 512GB.
  • North Korea Just Conducted Its Sixth Nuclear Test, Says South Korea

    North Korea Just Conducted Its Sixth Nuclear Test, Says South Korea

    South Korean President Moon Jae-in ordered the pursuit of the most powerful sanctions on North Korea with the worldwide community. Japan has confirmed that North Korea conducted its sixth nuclear test and has lodged a formal protest with Pyongyang .
    Gas Prices On The Rise After Hurricane Harvey

    Gas Prices On The Rise After Hurricane Harvey

    A crucial factor to consider is uncertainty - since the extent of disruption to the energy industry is still being assessed. Analysts are predicting prices will actually go down in Vancouver and on Vancouver Island by about the same amount.
    Crosby Ammonia Plant in Danger of Exploding As Harvey Fallout Continues

    Crosby Ammonia Plant in Danger of Exploding As Harvey Fallout Continues

    The plant, which is located northeast of Houston, was shut down on Friday in anticipation of the hurricane. Late Monday night, the facility lost power from both its primary supply and its backup generators.
  • Body of Missing Temple Student Found

    Body of Missing Temple Student Found

    The 29-year-old man police are questioning is from Lackawanna County and takes classes at Temple, a police source said. She reportedly transferred from Montgomery County Community College to the university for the fall semester.
    Gasoline Prices Up After Harvey Wrecks Texas Refineries

    Gasoline Prices Up After Harvey Wrecks Texas Refineries

    The Department of Energy hopes the release of 500,000 barrels of reserve crude will offset the fuel shortage and stabilize prices. The total shut-in is about 24 percent of USA refining capacity - nearly equal to Japan's daily consumption.
    Monaco bring in Jovetic as Mbappé replacement

    Monaco bring in Jovetic as Mbappé replacement

    Monaco boss Leonardo Jardim has stated that while Kylian Mbappe is a Monaco player for now, that may not be the case soon. FFP rules stipulate that clubs can not post losses of more than €30 million over the three-year period to 2018.
  • 70000 evacuated in Frankfurt to defuse WWII bomb

    70000 evacuated in Frankfurt to defuse WWII bomb

    Hospital patients and the elderly are among those affected in what will be Germany's biggest evacuation in recent history. Oranienburg, just outside Berlin, has the dubious distinction of being the "most risky town in Germany ".
    Robert Mueller teams with NY attorney general in investigation of Trump aide

    Robert Mueller teams with NY attorney general in investigation of Trump aide

    Both teams have reportedly collected evidence on financial crimes committed by Manafort, including potential money laundering. But leaning on Schneiderman's office to bring charges against the former campaign chairman could force his cooperation.
    Burger King Launches Own Cryptocurrency

    Burger King Launches Own Cryptocurrency

    Customers will be able to claim their coins simply by scanning their receipt using the Burger King apps on their smartphones. According to the forecasts, cryptocurrency will increase exponentially in value.


Popular

How Hurricane Harvey May Impact US Crude Oil Production
Over the last ten weeks, according to the API, crude oil inventories in the United States have shed more than 46 million barrels. The No. 2 US refinery, ExxonMobil's Baytown, Texas facility, is also offline and has suffered some roof damage.

Super Eagles will qualify for Russian Federation 2018 ―Dalung
We also need your support. "It is an important game for us, we know it's going to be hard , but we are prepared to beat Nigeria". He said, "Well, as for the level of preparation for Nigeria and Cameroon match, everything possible has been put in place".

US Created 156000 Jobs In August
The U.S. added 156,000 new jobs last month, according to the Labor Department's latest employment report . The economy has grown at a subpar annual pace of 2.1 percent during the first six months of 2017.

Amber Alert for mom, 1 year old canceled
They were taken from the home of Adams' mother at about 11:30 Thursday morning in the 7400 block of Dexter Street. Adams and her son are safe, but Venzor-Gonzalez ran from officers and is still at large, according to police.

Sheldon Richardson makes Seahawks' defensive line even better than it was
However, Ian Rapoport of NFL Network says Rubin could be on his way out of Seattle, with Denver being the likeliest landing spot. Kearse was a polarizing figure among fans but one of the most consistent wide receivers during Pete Carroll's tenure in Seattle.

How would you rate Channel 4's Great British Bake Off?
The figures are the lowest viewing numbers for an opening episode of The Great British Bake Off since 2013. Not only boasting a new channel, new judge and new presenters but a new yiddishe contestant to boot.

Mumbai Building Collapse - Inaction and Neglect cost 15 more lives in Mumbai
Fire brigade officials said some nine families lived in the dilapidated Husaini Building , which also housed a play school. High quality housing is in short supply and so people have no choice but to live in sub-standard and crowded buildings.

How to donate to Hurricane Harvey victims (and avoid a scam)
I wish I could answer your question, but it's not something I have visibility on in the role that I play in this organization. GoFundMe has a special page for Hurricane Harvey pleas for charities , individuals and families.

Torino confirm Chelsea have signed Davide Zappacosta in a £25m deal
Zappacosta joins Alonso and Antonio Rudiger as defenders to have traded Serie A for Stamford Bridge in recent times. I hope I can show my quality to the coach, my team-mates and the supporters '.

Ajay Devgn lashes out at Kapil Sharma
Adding to it, he said, "I don't know about others, but whenever I have done a multi-starrer, my character has always stood out". Chandan Prabhakar, comedian Bharti Singh and her fiance Harsh Limbachiyaa, Kiku Sharda are now part of Kapil's show.