Hurricane Harvey may not be a trouble to only the US but also to Canada. Canada may experience a hike in gasoline prices because of the catastrophic flooding that forced many refineries in Texas which supply gasoline to Canada to shut down.
Analysts expect that the wholesale price increase may become the reason for the raise of pricees by as much as 10 cents per litre. Also economist Sam Guatieri said that gasoline prices rose overnight when the topical storm knocked down about 15% of US refinery capacity and the price may rise if the rains continue and the floods refuse to retreat in America.
Many Canadian companies are also closing down offices stating that their number one priority is the safety of their employees and their families and will wait for the storm to calm down. S&P Global Platts has estimated that the hurricane has affected almost 2.2 million barrels per day of refining capacity in the United States, including ExxonMobil, Shell and Phillips 66 operations.
Just like the aftermath of Hurricane Ike that hit the Gulf Coast in 2008, Rick Joswick, an analyst with S&P Global Platts’ PIRA Energy says that even after the flood comes in control and things get normal, the prices of gasoline is expected to fall more slowly than after any other storms that has hit the Gulf in the past few years.
Goldman Sachs analyst Damien Courvalin also stated that because of the slow moving nature of this hurricane, it may result in shutdowns to linger and leave a more prominent and lasting damage in US.