Gasoline Prices Hit 2 Year High After Largest US Refinery Goes Offline for 2 Weeks

Gasoline spiked to a more-than-two-year high on Thursday after a report that the largest U.S. refinery could remain offline for up to two weeks due to impacts from Tropical Depression Harvey.

Meanwhile, U.S. crude oil prices were on track to post the steepest monthly losses in more than a year as concerns spread over falling demand in the world’s top oil-consuming country after storm Harvey knocked out almost a quarter of its refineries.

U.S. gasoline futures were up about 12 percent at $2.1108 per gallon by 10:30 a.m. ET, near the highest level since June, 2015. The contract was on track for its biggest one-day gain since March 1, 2016.

Motiva Enterprises’ Port Arthur, Texas refinery, the nation’s largest, may be shut as long as two weeks for assessment of the plant and repair of any damage, sources familiar with plant operations said on Thursday.

“That two weeks could become four. They’re thinking Motiva and they’re thinking everyone else in Beaumont, Port Arthur,” said Andrew Lipow of Lipow Oil Associates.

via CNBC

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