Fuel Scarcity Hits The US As Price Goes Up

By Ikenga Chronicles September 3, 2017

Fuel Scarcity Hits The US As Price Goes Up

Emerging report indicates that petrol shortage has hit theUnited States Of America,as a result of the storm Harvey.

As at Friday, the volume of crude production still shut-in had declined to about 153,000 bpd, down from 324,000 bpd just two days ago.

Average prices in Texas, the epicentre of the storm, rose more than 3 percent from Friday to Saturday, and are up 12 percent from a week ago.

Harvey shut refineries that can process up to 4.4 million barrels per day (bpd) of crude.

The plants shut down include Motiva’s 603,000 bpd facility in Port Arthur, Texas, the largest refinery in the country.

“The refineries were built on the Gulf Coast with the idea that we’re going to import,“ said Sandy Fielden, director of oil and products research at Morningstar in Austin, Texas, ”That’s why we’re having problems today because that’s where they were all built.”

The reduction in fuel supplies has forced the Colonial Pipeline, which supplies fuel from refineries near the Gulf of Mexico to the U.S. Northeast, to reduce supplies.

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