Hurricane Harvey Likely To Cause Gas Prices To Spike
The devastation in Texas due to Hurricane Harvey is almost unbelievable. Entire cities under water. Officials say some areas won't be livable for weeks or months. Lives lost in the flood waters. While we here in Eastern Iowa won't see the extreme weather that Texas has, Harvey could still hit our wallets.
Harvey has and continues to wreak havoc on energy facilities in Texas. At least 10 gas refineries have been shut down and that has caused U.S. gas futures to spike 7%. You can be that will mean higher prices at the pump soon, possibly as soon as today. Why the increase? Those facilities that down contribute around 2.2 million barrels of crude oil per day. Less gasoline for Americans to consume means higher prices.
The good news? History tells us these price spikes don't last long. In the aftermaths of other recent hurricanes, gas prices spiked between 20 cents and 80 cents higher. They then returned to normal levels in around 2 to 4 weeks.
While you might not like a temporary price hike at the pump, the people of Texas have larger concerns. Please donate anything you can to help in relief and recovery efforts! Visit the Red Cross and make your donation today!