Global fuel market faces Hurricane Harvey disruption
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.