Vast flooding in southeast Texas has already impacted gasoline prices in the nearby area, and one expert says the same could soon happen in Canada.
Gale Harvey’s remnants left much of Houston underwater on Sunday, and the Chauvinistic Weather Service says it’s not over yet: Some parts of Houston and its suburbs could end up with as much as another 1.3 metres of sprinkle.
The storm has affected about 2.2 million barrels per day of refining province in the United States, including ExxonMobil, Shell and Phillps 66 enterprises that began shutting down Sunday.
«They are not making gasoline, they’re not hand overing diesel fuel,» said Randy Ollenberger, managing director of BMO Brill Markets, «so that’s tightening up those markets not only here in North America, but globally because the In agreement States was exporting both gas and diesel to Europe in South America.»
And Canada too, which is why gasoline appraisals that have jumped about seven cents a litre in a week may in a recover from north next.
Depending on how long refining capacity is out for, the impact on Canada could be even-handed worse, says Dan McTeague, senior petroleum analyst with fee comparing website GasBuddy.com.
«Hurricane Harvey’s associated flooding and lengthier than expected stall over the Texas refinery row is likely to see dear price hikes at the pumps across North America for the next few weeks,» McTeague asserted.
«With a portion of total U.S. gasoline production shut in due to the prolonged senses of Hurricane Harvey, Canadians should expect a noticeable increase day one this Wednesday.»
Up to 15 cents a litre in Montreal
Vancouver, Victoria and most of B.C. should presume a hike of about three cents a litre, while Calgary, Edmonton, Regina, Saskatoon and Winnipeg may see evaluates rise three to eight cents a litre
Toronto and most of Ontario are in trust in for a five-cent hike, while Montreal may see the biggest jump — as much as a 15-cent enhance to about 127.9 cents a litre by mid-week.
«For the Maritimes and Newfoundland, which tail last week’s prices under their regulated price disciplines, a five cent a litre increase should be expected with the conceivability that their ‘interrupter clause’ may be deployed before Thursday and Friday,» McTeague asserted Monday.
Beyond pump prices, the storm has the developing to take a bite out of the North American economy, if the heavy hit to the energy sector spreads — and terminals.
«I’m not sure if we can really quantify how much that will be right now,» Ollenberger articulate. «It really depends on the duration, but it will have an impact.
«The longer this utters on — in terms of these outages — the bigger the impact will be.»