On Friday, the national average for a gallon of gasoline was $2.51, which is the highest price of the year. In some areas, prices jumped by double digits overnight, and there could be more sharp, but temporary gains ahead as distributors struggle with reduced supplies.
We spoke with a few of the larger gas stations in Wichita Falls to see what their fuel situations are. While part of the pipeline was still operating, "we don't know how much its carrying", Kloza said.
President Donald Trump has proposed selling almost half the petroleum reserve amid an oil production boom that has seen US imports drop sharply in the past decade.
US gasoline futures were up 5.9 percent to settle at 1.8847 a gallon, having hit $1.9140, the highest since July 2015.
U.S. oil prices have lost nearly 9% this month as Harvey crimps crude processing and investors weigh the nation's rising output against supply cuts led by members of the Organization of Petroleum Exporting Countries. "However, California fuel prices will likely increase", CEC Senior Fuels Specialist Gordon Schremp said in a statement. But a portion of that is now being restored. The Saudi-owned Motiva oil refinery is usually responsible for more than 600,000 barrels a day.More news: A Tropical Storm is Developing Northeast of Jacksonville
The Houston, Texas area has a large number of gas refineries.
Gasoline Prices are seen at a service station in MI, U.S., August 31, 2017. The average price last week was $2.16 while a month ago it was $2.17 a gallon. Friday's average price was even higher.
Energy Secretary Rick Perry noted the Colonial Pipeline outage is driven by limited gasoline supplies, not damage to the pipeline itself. Some of it is unfinished, meaning it needs to be blended before it can go to gas stations. "If everyone goes to the bank at the same time and tries to get their money, then it causes a panic and the bank doesn't have enough cash in the drawer to give everyone their money". Blue dots represent natural gas wells.
"Supply is way, way off", Thornbrugh said Thursday. "The system is equipped to have everybody with a half tank or so. So many people across the city have experienced it". "We expect the national average to top $2.60 a gallon".
"This makes for a muddled September, where I would have suspected that gas prices would have dropped" in the September to December period, "as they normally do", he said.