Harvey shuts down major fuel pipeline supplying Alabama, East Coast

No service

No service

Drivers paid $2.25 a gallon there as prices jumped in North Carolina 7 cents overnight.

"Until they know everything is okay, they don't want everybody to rush and take all of it they've got, and deplete their supply", he said.

Benchmark US gasoline futures surged more than 15 percent after Harvey hit.

The Energy Department released 500,000 barrels of crude from the Strategic Petroleum Reserve on Thursday. DeHaan said gas prices will likely continue to go up as the supply begins to dwindle.

Supplies from distant markets may not arrive soon enough to avert a crunch due to partial Colonial Pipeline closure.

"I think it's a possibility, especially if we can't get these refineries back online", Flynn said during an interview on "Mornings with Maria", adding that Colonial's supply is "not going to be easily replaced".

Supply shortages have developed even though there are almost a quarter of a billion barrels of gasoline stockpiled in the United States.

Lowcountry gas watch: Sticker shock at the pump? Blame Hurricane Harvey. Here's why

Tropical Storm Harvey's effect on the energy industry has spread beyond flooded U.S. refiners as fuel pipelines are also shut, threatening a supply squeeze around the country and roiling world markets as traders scramble to find alternative supplies. They were at $2.59 a gallon on Saturday, according to motorists advocacy group AAA, 16.7 percent higher on average than a year ago.

The WSJ also said that Mansfield Oil, a nationwide fuel wholesaler based in Gainesville, Ga., was reporting limited fuel supply in Austin as well as areas as far away as Atlanta. The EPA said on Wednesday that it had expanded fuel waivers for gasoline throughout the U.S. Southeast in anticipation of supply shortages.

Gasoline advanced, extending its longest rally since 2013, as traders assess the capacity of of key Gulf Coast refineries and pipelines to quickly return to service following Harvey.

The company is operating its pipeline at reduced rates east of Lake Charles, Louisiana, while the western portion in Texas is shut.

Suppliers in Chicago were trying to secure supplies after the Explorer Pipeline, which typically carries about 350,000 barrels a day (bpd) to the region, shut down. The problem, according to a letter from Valero to Texas Gov. Greg Abbott, R, obtained by Bloomberg: Colonial Pipeline won't accept the extra barrels. An Energy Information Administration report showed US crude stockpiles slid for a ninth week, though production - often given more weight by traders - continued to rise last week. Concerns were mounting ahead of the U.S. Labor Day extended weekend.

There are some reports as of Thursday that the Colonial Pipeline could resume operations within days, which, if true, could prevent the gasoline shortage from getting too bad. Margins for converting Brent crude oil in semi-complex refineries in northwest Europe are set to average $8.20 a barrel in September, according to WoodMac's refining and oil product markets research director Jonathan Leitch.

Fuel typically costs him about $25 a day at the most, he said, concerned the storm could eat into his profits.

Latest News