East Tennessee Times
Posted: Monday, August 28, 2017 11:32 AM
Updated: Monday, August 28, 2017 11:32 AM
Hurricane Harvey To Cause Gas Prices To Rise Across East Tennessee This Week
NASHVILLE, Tenn., (August 28, 2017) — The
gasoline market opened with a bang on Sunday night. The price on the
NYMEX surged 7 percent in overnight trading, signaling upward momentum
that is likely to carryover to prices at the pump.
"Hurricane Harvey hit a major supply line for gasoline in Florida and along the eastern seaboard," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Multiple refineries and drilling rigs had to be evacuated ahead of the storm, and the Houston Ship Channel was closed.
"There remains a lot of uncertainty in the market," Jenkins continued. "Uncertainty of the extent of the damages, and how long before operations are fully restored. Motorists should expect higher prices this week. It's still early know how much prices will rise, but a minimum of 10-30 cents would not be a surprise."
Tennessee gas prices averaged $2.16 on Sunday. The state average is 2 cents more than this time last week.
The most expensive gas price averages in Tennessee are in Memphis ($2.19), Nashville ($2.18), Johnson City-Kingsport-Bristol ($2.14)
The least expensive gas price averages in Tennessee are in Chattanooga ($2.07), Clarksville-Hopkinsville ($2.09), and Knoxville ($2.14)
As of Sunday night, our partner at OPIS estimates:
One out of every five barrels of gasoline - produced in the United States - has been threatened by Hurricane Harvey
More than a quarter of refining capacity in the U.S. Gulf Coast was offline
The current tally of oil refinery capacity idled by Harvey is estimated at 2,546,700 barrels per day or 28% of Gulf Coast capacity
Eight refineries in Texas were in the process of being taken through controlled shutdowns
Other refineries reduced production by an estimated 50 percent, to conserve supply, due to the closure of the Houston Ship Channel.
Further refinery shutdowns are possible, given the extent of flooding and forecasts for heavy rain in the greater Houston-Texas City area.
Valero Energy Corporation's assessment of storm impacts at its Corpus Christi and Three Rivers sites is that they did not sustain "substantial refinery impacts", due to the storm.
The company is working with government agencies and business partners to evaluate logistical measures needed to resume operations, with port operations a particular focus.
The amount of crude oil output shut in at U.S. Gulf of Mexico offshore platforms was estimated at 378,633 b/d or 21.64% of typical daily production in the region.
Five rigs and 105 (out of a total of 737 manned platforms) were evacuated.
EAST TN TIMES
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