The Texas Gulf Coast is feeling the effects of Hurricane Harvey’s disastrous power. Many oil and gas refineries have been forced to close, and gas prices are expected to rise nationwide due to the temporary shut downs.
Gas futures are up 5% this morning according to CNN Money. “Futures” are a prediction of the price gas stations will pay for wholesale gas in the future, and they’re a good forecast of consumer prices.
Because of so many refineries being shuttered, gasoline supply is sure to take a hit. Conversely, demand will go up, and gas prices at the pump will go up right along with it.
The Gulf Coast is an integral supplier of our nation’s gasoline, so hurricanes often affect production. A spike in prices at the pump are consistent with past storms. However, the increase never lasts long, and prices usually level out within a few weeks.
Hurricane Harvey hit the Texas Gulf Coast on Friday night as a category four hurricane. It has since been downgraded to a tropical storm, but it is slow-moving and has dropped as much as two feet of rain on Houston already. The flood it caused (and continues to cause) in Texas’s largest city is now being called a “500 Year Flood.”