Gasoline Prices Surge After Colonial Pipeline Shutdown, East Coast Fuel Shortages Loom
Gasoline prices have exploded higher once again this morning – topping the Maginot Line of $2.00 for the first time since July 2015 – following reports that the main conduit for fuel from the Gulf to the East Coast has been shut due to Hurricane Harvey.
Motor fuel prices climbed as much as 6.6 percent in New York, advancing for an eighth session, while crude oil was little changed. Harvey has shuttered about 23 percent of U.S. refining capacity, potentially cutting fuel-making ability to the lowest level since 2008 and depriving the Colonial Pipeline of supplies.
Its operator was forced to shut the main diesel line late Wednesday and planned to halt its gasoline line Thursday, meaning motorists from Maine to Florida may soon see higher prices at the pump.
Colonial, which is the biggest single fuel transporter in the US, shipping more than 2.5m barrels a day on its line – or roughly one in every eight barrels of fuel consumed in the country – said in a statement late on Wednesday that its line carrying diesel and jet fuel would shut on Wednesday evening, followed by its gasoline pipe on Thursday.
And that sent front-month RBOB above $2…
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