Reuters – Flooding from Tropical Storm Harvey has shut nearly a fifth of U.S. oil-refining capacity, triggering worries about a gasoline supply crunch as the slow-moving tempest lumbers through the heart of America’s petrochemicals industry.
At least 3.6 million barrels per day of refining capacity are offline in Texas and Louisiana, or nearly 20 percent of total U.S. capacity, based on company reports and Reuters estimates. Restarting plants even under the best conditions can take a week or more.
As a result of the outages, major pipelines carrying gasoline, diesel and jet fuel started to adjust deliveries or close lines outright because of a lack of supply. U.S. gasoline futures RBc1 surged 4 percent to settle at their highest in more than two years.
The U.S. Gulf Coast is home to nearly half of domestic refining capacity, with some 5.6 million bpd of capacity in Texas and 3.3 million bpd in Louisiana.
Read more at Reuters.