As tropical storm Karen, the first cyclone to threaten the U.S. coast this year moved across the Gulf of Mexico yesterday and some energy companies are shutting their operations for safety, Gulf Coast gasoline strengthened to a three-week high. This is important as amidst upsets at the two largest U.S. refineries, a gain for Gulf Coast is a positive indication.
Various forecasts from the U.S. National Hurricane Center said that Karen may sweep through offshore oil installations before hitting the mainland between Louisiana and the Florida Panhandle. The strengthening of Gulf Coast gasoline helped Conventional; 87-octane gasoline on the Gulf climbed 3.5 cents to 10.5 cents a gallon below New York Mercantile Exchange futures.
Whereas crude oil prices are hitting the turf, Gulf Coast gasoline reached the strongest level since September 12; Conventional gasoline blendstock or CBOB rose 2.88 cents to a discount of 12.75 cents. This is happening amidst the forecast that tropical Storm Karen, which formed in the southeast Gulf of Mexico may reach to hurricane strength today.
If Karen becomes a hurricane, it might disrupt operations on the coast which may in turn cause a decline in supplies in the region.
On Contrary Retail Gasoline Prices across Texas Continue to Fall
Whereas Gulf Coast Gasoline has strengthened, AAA Texas, a member club affiliated with the American Automobile Association (AAA) national federation and serves members in the state of Texas, reported that the statewide average price at the pump fell 4 cents to $3.16 per gallon. According to the organization, “The gasoline prices dropped 8 cents the prior week in Texas.”
Thus, it has continued to fall over the course of the last year where it fell by 38 cents.
According to various reports motorists in Amarillo and Austin are paying the most in the state. Though the prices have fallen in Texas, the average price nationally stood at $3.38; especially Hawaii is one such place where gasoline is being sold at even higher than the national price.
In Hawaii, customers need to shed $4.25. However, the customers in South Carolina pay even lower than the customers in Texas pay as they need to pay just $3.09. Though there is some trouble in the Gulf Coast, there are smooth gas supplies in the country. Moreover, as there is a lower demand for fuel and the move to cheaper winter-blend gasoline production has increase, the prices are expected to fall further.
To contact the reporter of this story: Jonathan Millet at email@example.com