IHS Markit said in a report Friday about 3.6 million barrels per day of Gulf Coast refining capacity or 20 per cent of the USA total is off-line, with a further 1.8 million bpd or 10 per cent operating at reduced rates.
The effects of Tropical Storm Harvey have shut down an estimated 30 per cent of USA gasoline production.
Prices at the pump have already leapt more than 10 cents over the past week in much of Ontario. Sherbrooke, amounted to $ 1.21, while the price of the Saguenay has climbed to $ 1.22 and at $ 1.24 in Rimouski.More news: Farrah Abraham's Daughter Needs To Focus On Modeling, So Now She's Homeschooled
Senior petroleum analyst Dan McTeague, of GasBuddy.com, predicts gas prices are about to skyrocket.
Although gas prices may hurt the wallet, people in South Dakota are traveling, but not as far as you think.
"That will have our gas prices high over Labor Day probably even through the middle of September", said Rhonda Keller, branch manager for AAA of Rapid City.More news: Texas Mother Died Saving Daughter 'Clinging' to Her in Harvey Flood
According to McTeague, "Canadian gas prices rise faster and higher than anywhere else in the world".
"Increases should start to slow next week sometime, maybe midweek", he said.
But the era of cheap gas likely isn't over - prices are expected to quickly go back down once Gulf Coast refineries go back online, Kloza said. "In Canada, we barely produce enough gasoline to meet our own needs".More news: Marathon Petroleum Corporation (MPC) Stake Raised by Robeco Institutional Asset Management BV
McTeague and Roger McKnight, chief petroleum analyst for EnPro International, agreed that prices on the Prairies will be stable over the weekend after rising by five to 10 cents to about $1.10 per litre in the past few days. Across Canada, gas prices are up an average of 9.5 cents compared with last week. However, most of the change is being driven by pessimistic speculation on the part of oil traders in the Northeast, he said, adding that it's too early to say whether there will actually be a shortage in the U.S.
- US Defense Chief Signs Orders Sending More Troops To Afghanistan
- 'I Don't Want to Be Disappointed by Congress' on Tax Reform
- Samsung announces Gear Fit2 Pro, Gear Sport
- Terry Pratchett's unpublished works destroyed by steamroller, as per his wishes
- Paris St-Germain, Monaco Agree Loan Deal For Striker Kylian Mbappe
- Sharapova, a Momentary Underdog, Is Hunting Wins Again
- Boats carrying fleeing Rohingya sink in Bangladesh; 26 dead
- Davide Zappacosta joins Chelsea in £23M deal
- Voters Split on Trump's Plan to Increase Troops in Afghanistan
- Drinkwater asks to leave Leicester amid Chelsea bids