Trump taps emergency USA oil reserve after Harvey

Trump taps emergency USA oil reserve after Harvey

Trump taps emergency USA oil reserve after Harvey

In the days since, many fuel stations flooded and some remain underwater, while stations that are dry may have run out of gasoline, ABC News reported.

After several days of heavy rain and flooding, gas prices reached an average of almost $2.51 a gallon, up 20 cents since two weeks ago and almost 30 cents since this time past year, although they fell back a bit Friday. Dallas-area average price was similar, but some stations were charing up to $ 3.99 or more on Thursday as demand spiked.

Overnight, AAA said gas prices jumped on average ten cents per gallon.

Colonial Pipeline, which brings petroleum products to the Athens area and the big fuel storage tank farm on Jefferson Road, predicted the pipeline from Texas would be open this weekend, but the problem was getting fuel into the pipeline.

Gas futures soared 6% on Wednesday after extreme flooding forced the shutdown of two Port Arthur refineries, including the largest one in the U.S.

The storm, which hit Texas last Friday, has disrupted oil refineries and pipelines on the Gulf Coast, leading to higher prices in the United States - and that has bled over into Canadian pricing.

Furthermore, gasoline inventories in the southeastern United States are now "at or above the historic five-year range", according the Energy Department. It expected to resume distribution from Houston on Sunday. "However, California fuel prices will likely increase", CEC Senior Fuels Specialist Gordon Schremp said in a statement.

Gasoline for October delivery fell to $1.7378 a gallon on the New York Mercantile Exchange at 1:41 p.m.in London.

In addition, a major east coast pipeline was shut down.

"This makes for a muddled September, where I would have suspected that gas prices would have dropped" in the September to December period, "as they normally do", he said.

"Some of the refineries in Canada are going through fall maintenance, and that means we just don't have any capacity". Ken Paxton, Texas Attorney General, warned drivers that this could happen.

Tropical Storm Harvey, which has been downgraded from a hurricane, hit oil refiners harder than crude producers. James Williams of WTRG Economics pointed out that the oil would produce around half a million barrels of gasoline-enough to fuel the nation's cars for an hour and 15 minutes.

The Energy Information Administration (EIA) is warning that current prices for diesel and gasoline "do not yet reflect the full effects of Hurricane Harvey" and that the devastation caused by that storm "casts a great deal of uncertainty regarding what may happen over the next few weeks".

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