Global fuel mar­ket faces Hur­ri­cane Har­vey dis­rup­tion

Financial Nigeria Magazine - - Finance -

Trop­i­cal Storm Har­vey's ef­fect on the en­ergy in­dus­try has spread beyond flood­ing U.S. re­fin­ers as fuel pipe­lines also shut, threat­en­ing a sup­ply squeeze across the na­tion and stir­ring up world mar­kets as U.S. re­tail fuel prices rose fur­ther.

Bench­mark U.S. gaso­line prices and mar­gins surged anew in overnight trad­ing on Au­gust 31. The jump came after the Colo­nial Pipe­line, the big­gest U.S. fuel sys­tem, said it would shut its main lines to the North­east, hit by out­ages at pump­ing points and lack of sup­plies from re­fin­ers. That artery can carry 3 mil­lion bar­rels of gaso­line and other prod­ucts daily.

The Gulf makes up nearly half of to­tal re­fin­ing ca­pac­ity in the United States – the world's largest net ex­porter of re­fined pe­tro­leum prod­ucts – send­ing the dis­as­ter's ef­fects rip­pling through global flows.

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