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Harvey Damage Raises Fuel Prices, Lowers Oil Prices

(Steven Martinez – HDT Truckinginfo)

As a result of the flood damage caused by Hurricane Harvey, fuel prices are rising across the country – but curiously, crude oil prices have dropped at the same time.

In the oil-producing Gulf region affected by the storm, eight Texas refineries have been shut down with as much as 2.7 million barrels per day of oil processing potential, according to the Oil Price Information Service. In the most recent report from the Energy Department, diesel prices hit a yearly high of $2.60 per gallon on average for the week, but the price reflected less than 1 cent of increase nationally. Much of the price increase will likely be reflected in next week’s numbers, as rain and flooding from Harvey could continue until Thursday, Aug. 31.

While the refineries were shut off as a precaution for the storm, flood damage has occurred at some facilities. ExxonMobil revealed that its Baytown and Beaumont refineries were flooded and unable to contain certain chemical pollutants as a result. Click here to read more.