But prices rallied in the oil products markets, with USA gasoline futures RBc1 hitting a two-year high above $2 a gallon, buoyed by fears of a fuel shortage just days ahead of the Labor Day weekend that typically sees a surge in driving.
Just like the banks, Sitton said there’s plenty of supply, but it will take longer to get that gasoline to the stations due to the high demand.
“We have gasoline. We have enough gasoline across the country and enough gasoline in Texas”. “Don’t worry. We will not run out”. Suppliers are seeing logistical problems getting gas to parts of the state, but not East Texas.
United States petrol prices surged anew in morning trade after the Colonial Pipeline Co, which operates the biggest USA fuel transport system, said it would shut its main lines to the Northeast amid outages at pumping points and lack of supply from refiners.
“There are definitely going to be some spot shortages developing as far east as SC, with those big cities that usually get their supply from the Colonial pipeline, Atlanta, Knoxville, Nashville”, said John Kilduff of Again Capital.
Elsewhere, Brent oil for October delivery on the ICE Futures Exchange in London declined by 39 cents or 0.74%, to $52.47 a barrel.
Concerns over the impact of Harvey trumped a report by the Energy Information Administration showing USA stockpiles falling 5.4 million barrels in the week to August 25 – before the hurricane hit. Now the average price for a gallon of regular unleaded gasoline in Georgia stands at $2.51.
Other plants in the Beaumont/Port Arthur area will probably face challenges restarting.
According to the AAA, the average national price of a gallon of regular unleaded gasoline was $2.519 early on Friday, the highest of 2017.
“The big issue? Shortages in the USA northeast”. At a Shell Station at Interstate 635 in Dallas, manager Tim Flatt had an employee wave away motorists with a paper “Out of Gas” sign after they twice went dry on Thursday. Georgia prices jumped almost 12 cents overnight and are up about 29 cents for the week.
Suppliers in the Chicago area hoped to avoid shortages and taking steps to try to prevent them as wholesale prices kept rising.
But the storm brought torrential downpours and water rescues to the Nashville, Tennessee, area Thursday and was expected to drop three to five inches of rain on Kentucky, including Louisville, and the Ohio Valley on Friday. So, don’t run out and fill up you tank.
At least two cargoes scheduled to deliver to Venezuela currently in the port of Curacao are now expected to be delivered to Ecuador.
Buyers for Latin America, where many countries are heavily reliant on US supplies, are trying to buy cargoes.
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.
“But we do have two things that have a negative impact on prices”, she said. The market is “way under-appreciating the magnitude of this”.
Closure of roughly a quarter of the USA refining industry sparked fears of fuel shortages before the Labor Day weekend and cast doubts on refinery demand for crude.