Harvey Could Drive Gas Prices Higher, Says GasBuddy
NATIONWIDE -- Hurricane Harvey is likely not to have a impact on your weather, but it may have an impact on your wallet.
GasBuddy.com says with Harvey pounding the Golf Coast, hundreds of off-shore wells as well as several refineries in Texas may shut down as the storm makes landfall.
GasBuddy says they don't know yet how prices will be affected, but a worst-case scenario would be major damage to a large refining hub in Houston, which if shut down could cause prices to rise significantly all across the country.
“This storm came out of left field and while we were all watching the eclipse, Harvey was gaining steam and pushing forward. The impact on Texas could be significant, which could lead to long-term issues in terms of gasoline supply for large portions of the country. While the picture continues to change, one thing is nearly guaranteed: gasoline prices in every state will be impacted to varying degrees over the next 1-2 weeks, possibly longer, so buckle up and be ready,” said Patrick DeHaan, senior petroleum analyst at GasBuddy.
As of right now, the Houston refinery is still operating. Another smaller refinery in Corpus Christi has already shut down with the eye of Harvey expected to make landfall there.
The White House is hoping to contain a possible surge in fuel prices expected to follow Hurricane Harvey since the storm will impact areas that produce more than 30-percent of the country's crude oil.
At a press conference today, Homeland Security Advisor Tom Bossert said he hopes to contain the surge by repairing damages to refineries as quickly as possible. Fuel industry experts say drivers could see fuel prices go up as much as 12 to 27 cents per gallon.